Regional Development Measures - Comptroller and Auditor

Office of the Comptroller and Auditor General

Report on Value for Money Examination

Regional Development Measures

Dublin Published by the Stationery Office

To be purchased through any Bookseller or directly from the Government Publications Sales Office

Sun Alliance House Molesworth Street Dublin 2

Pn2159 December 1995

Price pound10

copyGovernment of Ireland 1995

ISBN 0-7076-2329-4

P4~H44 I 000 1295 Bruns1middotick Pnss Ltd Gr~0-0 I

Report of the Comptroller and Auditor General

I have in accordance with the provisions of Section 9 of the Comptroller and Auditor General (Amendment) Act 1993 carried out a value for money examination on regional development measures

I hereby submit my report of the above examination for presentation to Dail tireann pursuant to Section 11 of the said Act

John Purcell Comptroller and Auditor General

22 December 1995

Table of Contents

Chapter 1

Chapter 2

Chapter 3

Chapter 4

Chapter 5

Chapter 6

Chapter 7

Chapter 8

Glossary Summary of Findings lll

Introduction and Overview I

Transport 9

Science and Technology 21

Tourism 29

Small and Medium Industry 39

Marketing 49

Water and Sanitary Services 57

Pre-1989 Projects 67

Appendices

European Funding

Examination Methodology

Transport - Administration and Evaluation

Science and Technology - Administration and Evaluation

Tourism - Administration and Evaluation

Small and Medium Industry - Administration and Evaluation

Marketing - Administration and Evaluation

Water and Sanitary Services - Administration and Evaluation

Glossary

ABT BIC BOD CDP CSF cso CTT EDP EPA ERDF ERU ESF ESRI EU FEOGA

GDP GNP HEIC HERMES IBEC IDA JGC PC MCA NMRC NSD OECD OPW PAT RampD RTC SampT SERTEC SFADCo SMEs TEU TMC TMS ucc UCO

An Bord T rachtaa Business Innovation Centre Biochemical oxygen demand Company Development Programme Community Support Framework Central Statistics Office Caras T rachtala Enterprise Development Programme Environmental Protection Agency European Regional Development Fund Environmental Research Unit European Social Fund Economic and Social Research Institute European Union Fonds Europeens dOrientation et de Garantie Agricole - European Agricultural Guarantee and Guidance Fund Gross domestic product Gross national product Higher EducationIndustry Co-operation Scheme The ESRI macroeconomic model Irish Business and Employers Confederation Industrial Development Authority Irish Goods Council Irish Productivity Centre Multi-criteria analysis National Microelectronic Research Centre National Software Directorate Organisation for Economic Co-operation and Development Office of Pubiic Works Programme in Advanced Technology Research and development Regional Technical College Science and technology South East Regional Technology Pilot Programme Shannon Free Airport Development Company Ltd Small and medium-sized enterprises Tonne equivalent unit Targeted Marketing Consultancy Targets Monitoring System University College Cork University College Dublin

--- -- ------

Summary of Findings

Background

The scale of expenditure on regional development measures jointly funded by the State the European Union (EU) and the private sector has been enormous by Irish tandardbull It is therefore of paramount importance that these funds be used to best effect and in a way that will contribute to the achievement of key national economic objectives

For that reason the examination sought to establish the extent to which the effectiveness of the measures under the Communiry Support Framework (CSF) 1989shy1993 was evaluated so that the findings could be applied to the management of current and future programmes in the area of regional development

A number of programmes within the framework were selected for specific examination It was also decided to review the overall position on European Regional Development Fund (ERDF) allocations for pre-1989 projects

CSF 1989-1993

The measures under the CSF 1989-1993 were administered on a programme basis This approach worked reasonably well However in a small number of cases there was a tension between the short-term budgetary requirements of the State and the desirability of ensuring a smooth implementation of the five-year programmes

Generally we found that

bull the combined thrust of the measures examined was consistent with the overall objectives of the CSF 1989-1993

bull measurement of achievement was not always possible since m some cases objectives were not set in quantified terms

bull output targets where set were usually achieved

bull in most cases the impact of the measures was not isolated and considerable difficulty was experienced in determining the extent to which sectoral results were attributable to investment under the measures

In addition a lack of baseline data and deficiencies m on-going data collection hampered effectiveness evaluation

The Department of Finance has made efforts to rectify evaluation deficiencies in relation to the CSF 1994-1999

Economic Impact

A study by the Economic and Social Research Institute (ESRI) in 1993 concluded that the CSF 1989-1993 expenditures should make a significant and lasting difference to living standards in Ireland The supply side effects of the EU funding should raise the levels of GDP and GNP by 08 per cent and 11 per cent respectively by the year 2000 The demand side effects of the EU element would raise GDP by 25 per cent and GNP by 35 per cent by 1993 according to the study The real rate of return on the investment of the EU resources was estimated at between 7 and 8 per cent

Specific Measures

Transport

pound86lm was applied to transport measures aimed at reducing the impact of Irelands peripheral location The bulk of the money pound668m) was invested in roads

One of the transport programmes main objectives was to reduce the transport cost differential for Irish exporters to Europe by a quarter by 1995 Transport costs had been estimated at 9 per cent of total export costs In retrospect considerable doubt has been cast on the validity of this estimate with recent studies suggesting a level of around 4 per cent

The economic impact of the investment was examined in 1992 by the ESRI and it was estimated that it would add 04 per cent to GDP by the end of the decade and impact on employment to the extent of 9000 jobs

However the impact of the programme on transport has not been determined largely because evaluation techniques are not well developed in this area

The Department of the Environment has sponsored two initiatives which if successful will assist in the future evaluation of transport investments These involve the construction and validation of models to effect

bull route transit time monitoring bull export transport cost monitoring

In regard to specific measures it was noted that

bull Progress on road construction measures was good with targets generally being met

Summary ofFindings

o Although investment in facilities at State airports had to be scaled back in 1991 significant increases in passenger throughput occurred

o Passenger numbers at regional airports where capital investment totalling pound2085m was undertaken fell far below the levels envisaged declining by 43 per cent over the life of the programme In 1991 external evaluators concluded that what was required in this sector was marketing assistance rather than infrastructural investment They particularly questioned the need for a jet runway at Farranfore

bull The targets set for commercial port measures were achieved with the exception of lift onlift off freight which only reached 62 per cent of the target set In relation to local ports the increase in freight was well in excess of target

bull Passenger numbers exceeded the level projected following the upgrading of rail services between Connolly Station Dublin and Maynooth However up to 1995 passenger numbers for the Arrow train service had fallen short of target with the stations closer to Dublin particularly failing to meet their targets

Science and Technology

pound209m was applied to six measures designed to enhance the technological capacity of industry

The measures were focused largely on providing testing infrastructure promoting linkages with third level institutions and developing and transferring leading-edge technologies

The approach was largely supply driven but a change of emphasis began with the adoption in 1993 of a measure to assist companies carrying out large research and development work The subsequent operational programme has taken this further and the emphasis is now on individual and applied research and development

No aggregate targets were set for the measures making it difficult to form judgments on achievement However research and development expenditure by indigenous industry almost doubled during the life of the programme and it appears that Irelands investment in terms of GDP has been increasing having moved from 087 per cent in 1987 to 104 per cent by 1991

Evaluation of the science and technology measures found that Ireland had successfully offered a range of technology services to industry However in a number of cases individual actions were criticised

Regional Development Measures ~~~~~~~~~~~~-

bull research in the areas of metal processing ceramics technology and polymers was conducted as part of a progranune that was too big too complex and in parts too futuremiddotorientated

bull centres conducting software engineering research operated under a confusing and conflicting set of guidelines and overlapped with other initiatives

bull research in the area of optoelectronics had largely failed to address the opportunities for application of that technology in mainstream manufacturing

bull the marketing and strategy used in the development of advanced manufacturing technology was below the quality required to address the needs of Irish industry

bull achievement in the area of academicmiddotindustrial transfer seemed less than envisaged

The Department of Enterprise and Employment has informed us that the Programmes in Advanced Technology which constituted the principal measure to develop and transfer leading edge technologies have since been redesigned and rationalised to make them more accessible and attractive to industry

Tourism

An estimated pound182m in public funds was applied to develop Irish tourism with the greater portion of the investment being channelled into public sector initiatives

Although only 46 per cent of the targeted increase in tourist numbers was achieved the revenue increase projected was exceeded It is now clear that the original targets for visitors and revenue were not consistent Employment targets were largely achieved However a 1994 study estimated that 50 of the jobs claimed would have been created without any assistance

No overall evaluation of the impact of the spending has as yet been undertaken Monitoring of the programme has not been satisfactory There has been a delay in finalising progress reports and the drawdown of ERDF moneys has also been delayed At August 1995 some [72m had not been drawn down from the EU

Evaluation is particularly important in view of the risk that some assisted projects might have proceeded even in the absence of State aid Given the timemiddotlag between construction and marketing of assisted facilities evaluation might be best carried out in 1996 It would in addition be more cost-effective if the contribution of all public sector inputs including those under the programme were assessed together

________S_u_mm~ry ofFindings

An evaluation carried out on a private sector marketing measure on which pound165m of public funds was spent concluded that while the measure was a significant contributing factor in the success of Irelands overall tourism performance serious questions arose on the effectiveness of some of the grants

Small and Medium Industry

Public expenditure of pound149m was applied to a series of measures aimed at creating 55000 jobs over the five years of the programme This target was exceeded However net job creation was quite low at around 1500 jobs

The overall programme was subject to external evaluation and late in the programme (1993) an Evaluation Unit was established in the Department of Enterprise and Employment A 1994 evaluation concluded that the programme was fairly well directed

Little evaluation was done on individual measures and actions The Department of Enterprise and Employment has acknowledged this and sees the new Evaluation Unit as filling this role

During the period of the programme a particular deficiency was the lack of information on the impact of the measures Indicators focused largely on inputs or activities The external evaluator reported that the lack of such information was a recurring problem when attempting to make value for money evaluations of specific measures

The Department of Enterprise and Employment has assured us that it is addressing this deficiency and that a range of performance indicators have been adopted for the subsequent programme and related data are being collected

A particular need at this point is to derive value from the information being compiled in that departments industrial database by identifying statistical techniques which can be used to analyse the relationships between the performance of supported firms and the assistance they have received

Marketing

Public funds totalling pound113m were applied in a set of measures designed to improve the marketing capabilities of small and medium enterprises The main aim was to increase exports by these firms from the 1988 level of pound25bn to pound45bn by the midshy990s The money was used by An Bord T rachtaa (ABT) to assist marketing activities of firms provide advice and information services and organise export promotions The overall export target was achieved However the exact impact of

the programme on that achievement is not clear An external evaluation concluded that since overall physical targets were being met it was reasonable to conclude that value for money was being achieved It did nonetheless recommend more detailed evaluation of specific measures

Matters which need to be addressed include

bull tracking performance of assisted firms bull relating that performance to State interventions using statistical techniques bull monitoring user perceptions of the measures bull tracking the evaluation of independent marketing capacity in firms assisted

The final incorporation of client data from ABT into the industrial database of the Department of Enterprise and Employment is important as it would facilitate analysis which could assist in evaluation and the focusing of marketing initiatives

ABT costs of administering the measures were reasonable although there may be scope for boosting cost recovery from older and more established measures with a view to reducing reliance on State funding

Water and Sanitary Services

Over 100 water and sanitary services projects assisted under the programme to the extent of pound222m have been estimated by external evaluators to have increased the capacity of existing services by

bull 386000 mday in the case of water supplies bull 451500 mday in waste water collection

Project selection criteria proposed by consultants engaged by the EU were received too late (December 1990) to influence the assignment of projects to the programme The programme was accordingly drawn from existing projects proposed by local authorities to the Department of the Environment

Targets were set and output recorded in terms of physical infrastructure using measures such as pipeline length and numbers of treatment plants While these measures of output are not susceptible to aggregation since each project has a different specification the figures reported appear to indicate underachievement which should be investigated by the Department It would be preferable to account for output on the basis of capacity at standard rates of operation

_____________S_u_mrnary ofFindings

Difficulties were also encountered in gauging the impact of the projects and the Department of the Environment had to abandon its initial attempt in this respect in 1992

Our review of projects included in the programme indicated

bull a tendency for a cost drift to occur between design tender and completion stages bull a need to consider more cost-effective ways of undertaking projects such as design

and build arrangements bull inadequacies in expenditure reporting by local authorities bull problems due to ground conditions not being as expected and records of existing

works being deficient

Pre-1989 Measures

Up to July 1988 ERDF assistance for individual projects could be reallocated if the original project did not proceed as planned However following EU reforms in 1988 this facility was removed In all Irelands allocation from the ERDF reduced by pound51 m some of which could have been avoided had the process of project substitution been more efficient The lack of co-ordination between Departments was responsible for a significant proportion of EU allocations decommitted

In particular the administrative practices in the Department of the Environment led to delays in submitting completion reportS which were critical to the claiming of EU aid The administrative deficiencies in the Department have since been addressed

Cohesion Funds are currently administered on a project basis In order to maximise funding allocations there should be close liaison bet ween Departments and spending bodies as well as a central claim control function to effect on-going independent reconciliations

--- middot-- -----middot-middot---------- -------- shy

Chapter 1 Introduction and Overview

Regional Development Funding

II Since 1975 approximately pound22bn has been received on foot of European Regional Development Fund (ERDF) allocations in respect of periods up to December 1993

12 This funding was made available as follows

D in the period to 31December1988 funds were mainly provided to assist specific projects

D thereafter moneys were allocated to programmes which allowed for flexible management of the funding

The Community Support Framework 1989-1993

13 The Community Suppon Framework (CSF) combined the regional development and other measures to be assisted by the European Union (EU) and the Irish Exchequer in a set of programmes In addition a funher set of measures (Community Initiatives) were jointly undenaken by the State and the EU Since the structural reforms at EU level in 1988 moneys from the ERDF the European Social Fund (ESF) and the European Agricultural Guarantee and Guidance Fund (FEOGA) are combined to address five objectives

bull promoting the development and structural adjustment of regions whose development is lagging behind

bull convening regions seriously affected by industrial decline

bull combatting long-term unemployment

bull facilitating the occupational integration of young people

bull speeding up adjustment of agricultural structures and promoting the development of agricultural areas

1hese moneys are generally referred to as Structural Funds

14 The framework agreed between the Government and the EU identified four priority areas

bull Agriculture fisheries forestry tourism and rural development bull Industry and services bull Measures to offset the effects of peripherality bull Human resources

Overall CSF Objectives

15 The overall objectives of the measures comprising the CSF and included in the National Development Plan 1989-1993 were summarised by the Department of Finance (Finance) as follows

to advance the national and community aspirations towards greater economic and social cohesion To this end the plan sought to prepare the economy to compete successfully in the European internal market and to promote economic development and the structural adjustment of the Irish economy through a balanced programme of investments in

bull productive infrastructure such as roads ports and sanitary services to help reduce transport and other costs to business

bull industry and services tourism and agriculture in order to create jobs

bull human resources to enhance education and skills of the existing and potential workforce

A particular objective of the investment programmes was to increase the annual rate of job creation from 29000 to 35000

16 Joint EU - national measures were administered through the following mechanisms

bull Operational Programmes bull Community Initiatives bull Community Programmes

Appendix A sets out the details of each of these mechanisms and the role of the ERDF

17 Virtually all the spending under EU assisted measures during the period 1989-1993 was administered on a programme basis The outturn was as set out in Table I I

lntrodumon and Overuiew middot---- - --- ------ shy

Table 11 Outtum on 1989-1993 measures

Category Total

poundm

National expenditure

poundm

ERDF funding

poundm

Other EU funding

poundm

Estimated private funding

poundm

Operational Programmes 7176 1987 1330 1827 2032

Community Initiatives 454 210 151 37 56

Community Programmes 106 47 52 7

Other Minor Funding 12 6 6

Totals 7748 2250 1539 1864 2095 Notes Outturn as at 31August1995 (excludes INTERREG RETEX Article 10 projects and

Perifra I and II

bull This figure includes all expenditure on foot of 1989-1993 measures including an estimated pound38267m applied in 1994 and 1995

Source Department ofFinance CSF Momtonng Committee financial tables

The National Development Plan 1994-1999

18 The control and management of regional development aid for the 1994-1999 period is basically the same as for the 1989-1993 period A further Community Support Framework has been drawn up and investments are administered on a programme basis An additional feature of the 1994-1999 plan is the availability of moneys from the EU Cohesion Fund Like pre-1989 ERDF assistance Cohesion Fund moneys arc allocated by the EU on a project basis

Purpose and Scope of the Examination

19 The CSF 1989-1993 comprised significant expenditure programmes As most commitments under the CSF had been discharged by the end of 1994 and a new agreement covering the 1994-1999 period was ratified in that year it was considered

These funds are targeted al major projects to aid Irelands economic and social cohesion with Europe

A small amount ofexpenditure was camedforward to 1995

---middot-middot---- shy

an opportune time to review the ounurn on 1989-1993 measures and to identify any lessons that may be applicable to the management of subsequent programmes The extent to which claims relating to pre-1989 projects had been finalised was also reviewed

110 The programmes selected for specific examination were

bull Transport bull Science and Technology bull Tourism bull Small and Medium Industry bull Marketing bull Water and Sanitary Services

Expenditure under these programmes represented pound254bn of a total expenditure of pound775bn under the CSF 1989-1993 (33 per cent)

The methodology used in the examination is set out in Appendix B

Control and Management of Regional Development Measures

111 Administration was through existing structures with expenditure being channelled through the relevant department or State body with responsibility for the administration of related national funds However this day-to-day administration occurred alongside a parallel arrangement under which the measures were coordinated on a programme basis

I 12 Each programme had a Government department designated to take responsibility for

bull policy development and on-going monitoring bull providing expenditure returns to Finance bull overseeing the activities of implementing agencies

113 An overall CSF monitoring committee was responsible for the framework as a whole Its main functions were

Transport measures were included in the Operatrona Programmefor Peripherality 1989-1993

Membergth1p ofthis committee comprised Government Departments the EU Commmion the European nvesttnent Bank and i1nplcmenting agencies

Introduction and Overview middot- --middot middot---middot----------------------middot-- - shy

bull ensuring efficient implementation of the CSF bull authorising the transfer of allocations between programmes bull considering reports from monitoring committees

114 Each progranune was in turn overseen by a monitoring committee whose functions typically included

lta ensuring the efficient implementation of the programme bull authorising adjustments to the programmes financial plan lta informing the CSF Monitoring Committee of progress in implementing the

programme It recommending appropriate impact indicators to evaluate programme

performance

115 This approach to administering the measures worked reasonably well The programme basis provided a framework within which

o objectives and targets could be specified o conscious readjustment could occur in the light of progress monitoring o evaluation of achievement could be addressed

116 However since funding continued to be voted in annual tranches there was in a small number of cases a tension between the short-term budgetary requirements of the State and the desirability of ensuring smooth implementation of the five-year progranune This occurred for instance in the area of marketing where expenditure in the later years was below forecast due mainly to Exchequer constraints

117 In many cases the funds administered under a programme constituted only an clement of State assistance in respect of an activity This raises questions about the value of attempts to gauge the effectiveness of selected State interventions to the exclusion of other similar assistance In order to ensure that full value is derived from money applied to evaluation there may be merit in taking an integrated approach in such cases In particular this appeared to be applicable in the areas of tourism and assistance for industrial development

Each monitoring committee included members from the responsible department the Department ofFinance other interested departments the implementing agencies the social partnen and the EU Commission

These measures were included in the Operat10nal Programme for Industrial Development 1989-1993

__________R_e=gbull_middoto_naJ_D_eve_lopment Measures

Role of the Department of Finance

118 Finance is responsible for claiming ERDF funds from the EU on the basis of expenditure information provided to it by the various departments responsible for implementing progranunes and initiatives It had representatives on the overall CSF monitoring committee and on each of the committees which monitored the Operational Programmes

Impact of the CSF

119 Macroeconomic reviews have been completed by the ESRI in 1990 and 1993 The later review examined the impact of CSF expenditure by comparing the economic result that would be achieved with and without the investment The without scenario reduced each programme which received support from the EU between 1989 and 1993 by the exact amount of the EU funding The study assumed that all expenditure funded by the CSF 1989-1993 would not have taken place without the CSF and that all other spending and taxation parameters would have remained unchanged

120 The 1993 study concluded that the CSF 1989-1993 expenditures should make a significant and lasting difference to living standards in Ireland The long-run (supply side) effects of the EU element will build up over a period and will raise the level of GDP by 08 per cent and GNP by II per cent by the year 2000 The short-term (demand side) effects of the resources made available by the EU would raise GDP by 25 per cent and GNP by 35 per cent in 1993 The ESRI estimated that this represented a real rate of return between 7 per cent and 8 per cent on the investment of the EU resources The employment effects of the EU aid included in the CSF were estimated to give a demand side effect of 30000 jobs in 1993 and to lead to a long-term supply side benefit which would raise average employment by 10000 These results compare favourably with the findings for other regions according to the EU Commissions mid-term review of the implementation of the Structural Funds 1989shy1993

121 The ESRI study had little difficulty in assessing the initial impact that infrastructural investment had on the economy through increased demand for building services However they noted that it is in the long-term that this infrastructural development can be expected to have an impact but they pointed out that this is where the greatest uncertainty arises and is the most difficult to accurately assess

The study was an attempt to quantify the full macroeconomic benefits from a particular programme ofinvestment initiatives

middot------------------------------ shy

Introduction and Overoiew

122 While such analysis tends to point to the macroeconomic benefits of a portion of the total package (the EU element) in promoting economic cohesion an assessment of the effectiveness of the total spending in promoting economic development and the structural adjustment of the economy can best be made by evaluating the economic impact of the individual programmes

123 In 1992 the EU Commission iniliated a quantification exercise under which common statistical indicators will be developed This should allow for comparison of the effects of Structural Fund investment throughout the EU

Outturn of the Programmes

124 Our examination reviewed whether appropriate systems procedures and practices had been put in place to evaluate the outturn of the programmes in terms of their objectives

General Findings

125 Our general findings were

bull the combined thrust of all programmes and initiatives was consistent with the overall objectives of the framework

o measurement of progress or achievement was not always possible because the objectives adopted at the overall framework level and at programme level were not al ways set in quantified terms

o while in most cases measures of programme output were generated effectiveness evaluation was not well developed and there was insufficient assessment of impact

o in cases where output targets were set for particular programmes these were in general achieved

126 A number of problems were noted during the course of the examination in relation to output measurement These included

o targets not being set o targets set being inappropriate or inconsistent o output not being fully reliable due to omissions and the influence of nonshy

programme expenditure

Regional Droelopment Measures

127 The institution of appropriate effectiveness reviews is dependent on three main factors which we found were generally absent

bull clear objectives incorporating measurable targets or appropriate indicators

bull on-going collection of data to facilitate analysis of progress and assist in the generation of measures and indicators

bull the existence of baseline data

128 The absence of these components makes evaluation particularly difficult The benefit from public money provided for evaluations of the programmes will not be obtained unless basic data is available to allow evaluators to assess achievement As a result a number of examinations carried out by evaluators did not amount to reviews of effectiveness but concentrated largely on implementation and output statistics

129 Finance has informed us that due largely to time constraints quantified objectives and indicators were not included in the CSF 1989-1993 They have assured us that this situation has been rectified in the CSF 1994-1999 where a set of specific quantified objectives at both macro and sectoral level have been identified The baseline position together with a quantified forecast for 1999 has been established in these cases This should improve the assessment of the new CSF

130 The following chapters set out our specific findings in relation to the measures under the CSF 1989-1993 selected for examination and the overall position on ERDF allocations for pre-1989 projects

Chapter 2 Transport

Background

21 The Operational Programme on Peripherality 1989-1993 (the programme) provided for investment in roads airports seaports and public transport designed to tackle two of the identified weaknesses in the economy

Cl high access costs resulting from Irelands peripheral location

Cl a poorly developed transport infrastructure hindering development and adding to costs

The programme was divided into two sets of measures concerned with addressing these weaknesses

Objectives

22 The overall objective of the measures was to reduce the impact on economic activity of Irelands peripheral location and in particular to reduce the cost of internal and access transport by

Cl supporting economic development through improving the internal and access infrastructures and services

Cl reducing the transport cost differential for Irish exporters to mainland Europe and the UK by about a quarter by 1995 (as compared with the cost to mainland European countries of trading with each other or with the UK)

Cl supporting industrial development by improving access to industrial production facilities and indigenous raw materials (including food and forest products)

Cl supporting the development of the tourism industry by improving access to tourism centres and developing the transport infrastructure and services within tourism areas

Transport Cost Differential

23 Before analysing the results of the measures by sector it is appropriate to consider in more detail the objective of reducing the transport cost differential which has an impact on mogtt if not all of the sectors

24 The objective was interpreted as reducing the proportion of export costs which was accounted for by transport and which had been estimated at 9 per cent According

___________R~eg~i_on_a_l_Deve_lopment Measures____________

to the programme this percentage was considered to be twice thbullt incurred by other countries of the EU trading with one another on the mainland

25 Two difficulties arise with this target

bull the accuracy of the 9 per cent figure bull the appropriateness of such an export cost measure

26 The 9 per cent figure was derived from two unpublished studies Whether the data used were representative must be questioned in light of further studies undertaken by the ESRI and the Transport Research Group at the University of Ulster The ESRI study established by means of a survey of I54 manufacturers that foreign transport costs as a proportion of foreign sales revenue amounted to no more than 38 per cent of foreign sales revenue The University of Ulster Study10 established that firms in the Republic faced an average transport cost of 42 per cent as compared with figures of 30 per cent to 32 per cent for German Scottish and Northern Irish companies These studies cast considerable doubt on the validity of the contention that the transport cost component of export sales was as high as 9 per cent and up to twice that prevailing in competitor countries

27 In retrospect this is not a surprising finding If the transport cost of exporting is higher in Ireland than elsewhere then it might be expected that

bull firms which face heavy transport costs would not set up in Ireland bull firms would be unable to compete in relatively remote markets for which

transport costs are high

28 In fact it appears that the transport cost proportion may remain relatively low despite the high cost of moving goods because the structure of Irish exports will tend towards those goods that are less transport intensive

29 This serves to illustrate the point that a more appropriate objective for the programme might have been that of reducing unit transport costs facing the Irish export trade This objective would require that the cost per tonne-kilometre of moving goods to continental destinations be reduced The advantage of this criterion

Irish Manufacturers Transport costs Results of Two Surveys m the Role of the Structural Funds Analysis ofthe Ccnsequences for Ireland m the context of1992 ESR Paper 13 Policy Research Series 1992

IC European penpherality States ofmind Proceedings ofa conference held on the 9th February 1994 at the University of Ulster at jordanstown

is that it is independent of the actions which firms themselves take to alter their

production structure to minimise the impact of high transport costs

Expenditure

210 pound861m was spent on measures under the programme Table 21 sets out the planned

expenditure and the outturn on the programme

Table 21 Programme expenditure - transport

Sector

State Airports

Regional Airports

Commercial Seaports

Local Seaports

Rail Freight

Mainline Rail

Regional Public Transport

lechnical Assistance

Forecast

poundm

Outturn

poundm

652 ---------------middot--

Total 90576 86090

Notes This measure was introduced after the mid-term review b This expenditure attracted ERDF aid ofpound558 74m at aid rates varying from 40 per

cent to 75 per cenL Source Operational Programme Final Report

Included in the outturn figures are sums totalling pound4956m which were carried over

to 1994 and 1995

211 Over three-quarters of the investment under the programme was spent on roads with

major improvements to national primary roads accounting for over half the total

___________R~egwnal Dl)_elopment Measures

Adjustments to the Planned Programme

212 Comparison of the outtum against the planned expenditure should take account of the fact that

bull available EU funds increased as a result of the 1993 currency realignment bull the programme was scaled back somewhat with the associated EU funding being

transferred to other programmes as a result of

the deferral of a number of projects the downward revision of planned expenditure on other projects

213 The Department of the Environment (the Department) stated that the expenditure shortfall on road projects was entirely due to the devaluation of the Irish pound as additional Exchequer funding was not available to match the increased ERDF prov1s1on

214 In addition certain projects were transferred from the programme in 1993 to avail of Cohesion Fund assistance but were replaced with others This led in part to the carryover of expenditure into 1994 and 1995

Programme Output

215 The programme output per sector was as follows

216 With the exception of major improvements to national primary roads and some bridge works the programme targets were met Achievement in respect of road measures is set out in Table 22

Tran~port__ ___ _

Table 22 Target and achievement bull roads

Category

National Primary Roads - Major Improvements

Completed Commenced2

- Other Improvements

- Road Pavement Improvements

- Bridge Works

Industrial Road Improvement middotRoad - Pavement - Bridge Works

Tourism Road Improvements - Road - Pavement - Bridge Works

Target

29 projects - 150 kms 28 projects - 200 kms

50 - 55 kms

75 - 80 kms

About 200 bridges

60 to 80 kms 800 to 1000 kms 85 to 100 bridges

Programme achievement

75 kms

95 kms

161 bridges

65 kms 810 kms

79 bridges

60 kms 565 kms

58 bridges

Notes These projects were started using programme finance but not finalised by 1994 b Estimated achievemenL (The Department stated thalt exact figures were not available

due to the large number ofroad projectJ and because some projects would continue in the posr programme penod)

Source Department ofthe Environment

State Airports

217 The programme envisaged that passenger traffic at the three State airports (Dublin Shannon and Cork) would grow from 72 million in 1989 to 896 million in 1993 an increase of 24 per cent Investment of pound824m was planned on that basis

218 However in 1991 passenger numbers declined due to the Gulf War and the recessions

in the US and UK At the mid-term review of the programme the projected passenger traffic growth was reduced from 24 per cent to 9 per cent with 7 87 million passengers

expected in 1993

219 Due to these revised forecasts in air passenger traffic the emphasis was changed from investment in airside 11 facilities and priority was given to landside12 facilities Final expenditure on State airports amounted to pound4426m

220 In the event actual passenger numbers at the State airports increased substantially aher 1991 Aer Rian ta recorded passenger traffic of 837 million at the three airports in 1993

Regional Airports

221 A target of increasing passenger traffic at the six regional airports from 400000 in 1989 to 800000 in 1993 was included in the programme

222 By 1991 there was a reduction of over 28 per cent in passenger traffic carried at the regional airports again due to the Gulf War and the recessions in the US and UK

223 The expenditure forecast of pound2352m on regional airports was accordingly adjusted downwards to pound21m The actual programme expenditure by each regional airport is detailed in Table 23 below

Table 23 Programme expenditure - regional airports

Airport Expenditure poundm

Carrickfin Airport (Donegal) 342

Carnmore Airport (Galway) 118

Sligo Airport 040

Waterford Airport 280

Connaught Airport (Mayo) 043

Farranfore Airport (Kerry) 1262

Total 2085

Source Operauonal Programme draft Final Report

11 These included improved runways taxiways and aprons

11 There were mainly car parkingfacilitier

Transp~ middot------------ shy

224 Figures for passenger numbers at the regional airports over the programmes lifetime detailed in Table 24 show that numbers after an initial increase declined to 57 per cent of the 1989 level

Table 24 Passengers at regional airports I 989middot I993

Year Passenger numbers

1989 413000

1990 483900

1991 371000 1992 272700 1993 235700

SoHrce Department ofTransport Energy and Communications

225 During the programme the external evaluators expressed the view that at the 1991 levels of air traffic there was no foreseeable need for jet runways at any of the new regional airports and in their opinion a jet runway at Kerry which was completed in May 1994) was not a priority They concluded that what regional airports needed was a series of measures which would promote traffic rather than further capital development

226 In 1993 the Government approved a proposal to introduce an Essential Air Services programme to guarantee a minimum level of service at regional airports Following consultation with the EU Commission it was agreed to proceed with four routes connecting Dublin to Kerry Galway Sligo and Donegal

227 Contracts were awarded in respect of the first two routes and the services have been operational since January 1995 Tenders are under consideration at present for the two remaining routes

Commercial Seaports

228 In relation to the four commercial seaports selected Dublin Rosslare Waterford and Cork) the programme placed emphasis on the provision of appropriate port capacity and quality port infrastructure

229 The development of these ports which handle over 80 per cent of total seaport trade was designed to ensure that the services and facilities available to Irish exporters were upgraded so that exporters would not suffer any further competitive disadvantage in relation to their European counterparts

A consortium kd by DKM Economic Consultants

Regional Development Measures__________

230 The programme envisaged improving berthing and handling facilities so that aggregate throughput for the four ports up to 1993 would increase under the various freight categories Table 25 sets out the target and actual increase in this regard

Table 25 Targets and achievement middot port throughput

Freight Category Target Increase Increase Increase 1993 1994

Roll onRoll off (units) 60000 42145 65337

Lift OnLift Off (TEUs)b 150000 33564 93514

Bulk freight (million tonnes) 100 120 197

Notes 2 7be 1994 inmase is quoid since 13 percent ofspending was carried over to chat year h Tonne Eq11ivalent Units

Source Department ofthe Manne

231 The overall programme target for tonnage handling set at 179m was achieved to the extent of 177m by 31December1994

Local Ports

232 The programme stipulated that the investment in local ports would be primarily influenced by the ability of the ports to contribute to sub-regional economic development The aim of the investment was to increase freight capacity of local ports by 250000 tonnes by 1993 and to increase ship handling capacity at the ports of Drogheda Dundalk Foynes Galway and Kinsale

233 Department of the Marine returns show that over the life of the programme the increase in freight was 13 million tonnes which greatly exceeded the original target

Rail Freight

234 The programme provided for a rail freight project involving the development of a rail link to a lift onlift off terminal at the North Wall of Dublin Port In 1991 the shipping company involved terminated its activities at the North Wall and as a result the monitoring committee reallocated the proposed funding to two projects one a rail link and the other a rail by-pass

235 The objective of the rail link project was to provide a direct freight transport rail link to the port of Belview in Waterford The project has been completed The only measurable target set was in relation to traffic throughput This declined in 1995 due mainly to a change by a shipping company in its shipping movements

----- ---- Transport

236 The objective of the rail by-pass project was to allow trains to operate between Waterford and Kildare without locomotive shunting in Kilkenny This will also facilitate passenger traffic Due to the late approval of this project and planning difficulties work is not expected to be finalised until late in 1995

Mainline Rail

237 This measure was introduced following the mid-term review Projects under the measure upgraded the Dublin - Belfast Dublin - Cork and Dublin - Waterford railway routes

238 Work done under the programme represented the first phase of the upgrading of the mainline rail infrastructure along the three routes This work included the replacement of track and in the case of the Dublin - Belfast route there was also investment in the signalling system and rolling stock

239 The overall objectives of the three projects include

bull an increase in operating speeds (including the removal of severe speed reductions) bull improvement in service in terms of reliability dependability and quality bull reduction in journey times bull reduction in maintenance costs

240 No specific interim targets were set 10 relation to the investment during the programme

241 pound2372m was spent from the programme on these projects Project completion will coke place up to 1999 using assistance from the Cohesion Fund and the Transport Operational Programme 1994-1999

242 Originally the programme included a rail project for West Dublin However following socio-economic analysis of the project an alternative less costly commuter service - Heuston Station to Kildare (Arrow) - was approved The Arrow service came into operation in May 1994 Traffic levels have grown steadily since its introduction and by 1995 Arrow passenger numbers reached 1400 per day compared to a target figure of 2300 per day The stations closer to Dublin (Clondalkin and Cherry Orchard) have particularly failed to meet the targets projected

243 Other projects undertaken included the replacement of freight gantries at key locations and the upgrading of the mainline rail route between Connolly Station

Regional Development J1_e_as_u_-----------shy---middotmiddotmiddot---shy

Dublin and Maynooth where daily passenger numbers have increased to 2700 by 1995 which is ahead of projection

External Evaluation

244 The programme made specific provision for the appointment of an external evaluator The external evaluator also had a role in monitoring the progress of the programme and in particular could make proposals for adjustments to measures in light of problems encountered during implementation The evaluator reported to the monitoring committee

245 During the course of the programme the evaluator prepared more than 50 reports attended monitoring committee meetings and provided support to the EU Commission and the Irish authorities in implementing the programme

246 Among the reports of the evaluator were papers on

bull proposed modifications to measures bull the development of a road transit monitoring system bull the financial position of measures bull monitoring evaluation and ex-post appraisal bull perceived effects of peripherality and investments under the programme bull Irish vehicle ownership and traffic forecasts bull cost benefit analysis parameter values and application rules bull the macro-economic effect of the programme

247 The role of the external evaluator appears to have concentrated on the preshyimplementation stage addressing deficiencies in the programme and providing expert advice on the development of monitoring and evaluation systems which will aid future evaluation of transport initiatives

Programme Impact

248 The programme could be expected to have two main impacts which are related to each other

bull a set of specific transport impacts bull an overall economic impact

Transport

Transport Impacts

249 Transport impacts under the programme could be expected to include

bull reduction in the cost of transport for existing users bull reductions in journey times and improvements in their predictability bull opportunities for new trip making by existing and new users (generated traffic)

250 No overall evaluation of these effects was attempted Attention focused mainly on how impact might be gauged This was largely because evaluation techniques are not well developed in this area

251 The Department received advice from two sources on evaluating the effectiveness of the programme in terms of its impact on transport costs and route transit times Work is still on-going in both of these areas and the Department has sponsored the following initiatives

bull the piloting by An Bord T rachtila of an export transport cost monitoring system

bull the development of a computer simulation model by the Environmental Research Unit for route transit time monitoring which would assess reductions in transit time and transit time variance resulting from road improvements on key routes

These initiatives are further outlined in Appendix C

252 The EU Commission supported the Departments initiatives to develop transport cost and transit time monitoring systems since such systems could have application across the EU In this regard work undertaken on transport impacts was regarded by the Department as experimental

Economic Impact

253 The economic impact of total programme expenditure was the subject of an evaluation by the ESRI in June 199211

DrJames Crowley andJenninglt Consultancy

II This was done usrng the ESRI Medium Term Model (HERMES) The ESRI estimated the contnbution ofthe rota programme expenditure (including both EU and Exchequer fundmg) up to the year 2000

-------Regional Development Measures

254 While the results of that assessment are necessarily tentative it provides the only available assessment of the programmes likely overall economic effects 16

255 The model predicts a contribution to gross domestic product rising to a level of over 04 per cent by the end of the decade and an employment increase of 9000

256 No assessment has been made on the actual or potential impact of the programme on export performance

The projected economic 1mpactJ are dependent upon the accuracy ofthe assumptions used m the course of the economic 1nodelling exercise Some of the inputJ for example reduction in transport coslS are based on planning assumptions rather than actual oucturns

Chapter 3 Science and Technology

Background

31 Six measures designed to enhance the technological capacity of Irish industry were included in the Operational Programme for Industrial Development 1989-1993 (the progranune)

32 The overall objective of the measures was stated to be to develop in Ireland the level

of technological capability necessary to underpin the competitiveness and more rapid development of industry The measures were aimed at all sectors of Irish industry with particular emphasis on indigenous firms

Expenditure

33 Expenditure under the measures was pound20889m which was invested as shown in Table 31

Table 31 Programme expenditure - science and technology 1989-1993

Measure poundm

Programmes in Advanced Technology (PATs) 5961

2 Higher EducationIndustry Linkages and Innovation 3693

3 Technology Services to Industrymiddot Services 2599

4 Technology Services to Industrymiddot Infrastructure 957

5 Regional Infrastructure 2996

6 Industry Research and Development Initiative 4683

Total 20889 Source Departmenl ofEnzerpme and Employment

34 In addition a further pound12Sm was spent on monitoring and management bringing the total spending to pound21014m Public expenditure amounted to pound142lm of which pound11030m was provided by the ERDF It is estimated that pound6743m of the total was spent by the private sector The measures arc outlined in Appendix D

Focus of the Measures

35 While the programme did not set an explicit strategy for the achievement of the stated objective the individual measures suggest that the strategy had the following

components

----middot----middot ------------------------ shy

___________R_e~g~io_na_l_D_eve_loeuro_~1_gt1_ezs_ur_es

bull to develop and transfer leading-edge technologies bull to promote and facilitate linkages between the third level education sector and

industry bull to improve product and process development within industry bull to provide an information service on science and technology issues bull to support the provision of infrastructure for testing services

36 In regard to the focus of the measures research17 has suggested that the capacity of firms to absorb new technology is related to the extent of their existing research and development (RampD investment In addition technology transfer is facilitated if there is a good level of technical skilling within firms

There would therefore appear to be merit in evaluating the targeting and likely effectiveness of interventions on the basis of these two trends

37 It is of note that prior to the introduction in 1993 of the Industry RampD measure there was a very low level of direct support for in-firm RampD It is also of concern that this measure was partly introduced to absorb underspending on other measures In regard to skilling few resources appear to have been directed towards the upgrading of technical skills within industry

38 The Department of Enterprise and Employment (the Department has informed us that as a result of experiences gained in the course of the programme and from its evaluation the focus of activities for the period 1994-1999 has been considerably revised and there is now a particular emphasis on individual and applied RampD

Achievement

39 There were no aggregate targets set for the measures against which their effectiveness could be gauged Consequently it is difficult to conclude on their achievement It is recommended that in future such targets be set and the increased emphasis on performance measures and targets in the 1994-1999 programme is welcomed

310 It was stated in the programme that the measures would significantly raise the levels of RampD in indigenous industry The degree to which this was achieved could be taken as a measure of success Table 32 shows that while RampD expenditure by indigenous industry almost doubled during the period of the programme it remained at about one-third relative to overall investment by industry in RampD

11 Technology and the Economymiddot The Key Relationships OECD 1992

Table 32 RampD expenditure by indigenous industry 1982-1993

Expenditure poundm

Percentage of total industry RampD

Notes This figure IS not compded for every year b Approximate

Source Forfas

311 Irelands investment in terms of GDP has been increasing having moved from 087 per cent in 1987 to 104 per cent by 1991

Evaluation of the Science and Technology Measures

312 There were two evaluations relating to the entire range of science and technology (SampT) measures

bull an assessment of the impact of CSF assistance on Irish RampD (the Tsipouri Report)

bull the Evaluation of the Industry Operational Programme (the External Evaluation)

In addition evaluations were carried out on most measures or actions Our detailed review of the evaluations is at Appendix D

313 While evaluation repons recognised that SampT initiatives in Ireland had been well ahead of other less favoured regions in the EU in terms of timing coherence and

II Assessment of the Impact of the Community Support Framework on Research and Technological Development m Ireland middotfopouri Reportmiddot 1993

Deloztte and Touche

middotmiddotmiddotmiddot--middot --------------middot-middot--middotmiddotmiddot shy

variety and that in general Ireland had been successful in offering technology services to industry they were less positive when it came to evaluation of some specific measures

Programmes in Advanced Technology (PA Ts)

314 The aim of the PA Ts measure was to develop and transfer technologies to industry in eight selected areas The PA Ts operated within a departmental framework which set various funding targets to be achieved within a specified period Our examination found that the PA Ts would have difficulty meeting these targets

315 An evaluationdeg of the overall PA Ts measure concluded that

bull PA Ts were more driven by the supply side (universities) than led by industrial demand

bull there was more good will than achievement by the PA Ts in the area of academicshyindustrial technology transfer

316 The Department has informed us that these schemes have now been redesigned and subsumed into a new and more rationalised measure in the 1994-1999 programme and operate under the control of a board drawn from industry the third level education sector and the State The aim of the revisions was to make them more accessible and attractive to small and medium enterprises

317 Evaluations of the individual PA Ts were often critical of their effectiveness Examples of such criticism included

bull Marketing and strategy functions for the AMT Ireland PAT were below the required quality to take advantage of the needs of industry in Ireland

bull The Materials Ireland programme was too big too complex and in parts too future-orientated to do its industrial development job as well as was desirable

The Optronics Ireland PAT would be unable to meet funding targets without bull major reorganisation allied to refocusing of its programmes It had largely failed to address the opportunities for application of the technology in mainstream manufacturing and its response to the needs of Irish companies was very low

10 Tsipo1m Report 199)

Evaua1ions were condc1ed by various consultants Full detaJs are contained in Appendix D

middot----middot _Science and Technology

bull Centres established under the Software PAT operated under a confusing and conflicting set of guidelines and its objectives overlapped with other PA Ts

Other Measures

Other key findings from the overall evaluations included

e The initiatives under the Higher EducationIndustry Linkages and Innovation measure were driven by the supply sector rather than being led by industrial demand The achievement in the area of academic-industrial transfer seemed less than that envisaged

o The Regional Infrastructure measure had been treated as a catch all category with a variety of useful individual initiatives but without any clear overall coherence There was a need to balance the investment in technology acquisition with a significant increase in support for technology transfer

Improving Evaluation of Measures

318 While evaluation findings arc discussed with the agencies there appeared to be a need for a more formal system to consider analyse and where appropriate ensure implementation of the evaluation recommendations

319 Much of the evaluation of the programme to date has centred on the focus of the measures and on progress in implementation rather than on their effectiveness Performance indicators were not set for all measures and many of the indicators used focused on outputs rather than impacts

320 The Department has assured us that by the end of 1995 most measures with the exception of the Industry RampD measure will have been the subject of evaluation This measure which operated on a pilot basis until 1993 and was revamped before its relaunch in 1995 should be evaluated at an early date to determine whether it is an effective approach because

bull it is a key element in the CSF 1994-1999

it is important to conclude at least tentatively on the extent to which the risk bull of deadweight 12 is outweighed by the increased productivity gained by aiding firms with the capacity to absorb technological know-how

12 Assistinginns with activities which they 1nay have undertaken in any even

- middot---- - ---- middot---shy

Regional Devel_op_m_en_t_M_e_as_u_res_______ _____

321 Since it is very difficult to capture the wider impact of SampT investment on wealth creation it is suggested that evaluation at the measure level could be assisted by the establishment and use of intermediate indicators of impact

322 The development of intermediate indicators is best done at the level of individual actions within each measure The Department has assured us that this work is in hand in terms of the following

bull the improvement of indicators has been addressed in the context of the 1994-1999 measures

bull additional indicators arc being finalised by its Evaluation Unit

bull work being undertaken at OECD level is being monitored to extract guidance on how best to capture the benefits of SampT investment

323 In view of the scarcity of guidance on the effectiveness of SampT interventions it is important that the drive to develop and implement the best available indicators of SampT impact be continued

324 Attention should focus on determining achievement to the extent possible in terms of final outcomes such as

bull new companies established bull new products or processes generated bull improvements to products and processes

Where possible these should be supplemented by employment and profitability indicators

325 Evaluations are only likely to be effective if the underlying information upon which they arc based is collected systematically Key indicators based on such information should be compiled on a regular basis in order to allow for on-going review of the measures It is essential that information requirements be specified early in the 1994shy1999 programme in order to ensure that the necessary information is available at the evaluation stage

326 On-going review would be facilitated if performance information was captured in the Departments industrial database The recording of SampT grants and the performance of assisted firms would be of particular use in this regard This database could then be subject to analysis in order to ascertain which measures are most effective in achieving their aims

_________S_nence and Te_ch_n_o_lo~gy~---

327 Our detailed findings on the administration and monitoring of the measures are set out in Appendix D

Chapter 4 Tourism

Background

41 The objective of tourism strategy over the period 1989-1993 was to accelerate and facilitate tourism growth by developing the sector through

bull the provision of high quality marketable amenities and facilities bull an increased and expanded training provision bull better marketing bull improved competitiveness bull a better distribution network

42 The Tourism Operational Programme 1989-1993 (the programme was seen as a key clement of the strategy

Expenditure

43 An estimatedpound33lm comprising both public and private funding was spent under the programme on regional development measures up to 31 December 1994 This expenditure was applied as set out in Table 41

Table4l Programme expenditure - tourism

Type of measure Total EU Exchequer Private investment

poundm poundm poundm poundm

Public sector 1285 824 461

Private sector 2018 543 1475

Technical Assistance 06 05 01

Total 3309 1372 462 1475

Note Includes some measures not admmistered by public bodies Source Department ofTourism and Trade

Measures

44 The amount of investment on measures included in the programme is shown by type in Tables 42 and 43 The measures are outlined in Appendix E

lJ These measures conslJt only ofthe public and private regional development measures under the programme

Regional Development Measurer

Table 42 Public sector measures - tourism

Measure poundm

Inland waterways 259

2 Outdoor specialist sports facilities 21

3 Walking cycling touring and equestrian 44

4 Culture and heritage 754

5 Leisure and health 117

6 Caravan parks

7 Coastal marinas 66

8 Marketing 24

Total 1285

Source Department of Tourism and Trade

Table 43 Private sector measures - tourism

Measure poundm

Specific interest - active 776

2 Specific interest - passive 24

5 Conferences 241

6 Marketing support 460

Total 2018

45 A further set of training measures costing pound52 lm was also carried out under the

programme to meet the manpower requirements of an expanded tourism sector However as these measures were co-financed by the ESF they arc not examined in

this report

46 The programme covered the period 1989-1993 However there was a facility

whereby eligible expenditure in 1994 could be included in the programme provided it was committed to projects before the end of 1993 Some pound23lm of 1994

expenditure was included in the programme

Targets

47 The main targets for tourism over the period 1988-199 3 were as follows

bull an increase of 216 million (90 per cent) in the number of overseas visitors by 1993 bull an increase in revenue from visitors to Ireland of pound500m (59 per cent) by the end

of the progranune bull the creation of 25000 net jobs sustained by tourism (37 per cent increase)

48 The targeted increase in the number of overseas visitors (90 per cent) was substantially higher than the targeted increase in overseas revenue (59 per cent) These targets have been proved not to have been consistent Targets and results are set out in Table 44

Table 44 Targets and achievement - tourism 1988-1993

1988 Target increase Actual Target Actual by 1993 increase by achievement

Number of overseas visitors 234Sm 216m 0985m 46

Overseas tourist revenue pound841m pound500m pound526m 105

Employment sustained by tourism 67600 25000 24300 97

Nore bull Slighdy different baseline fig1ms were specified in the onginal programme The

differences are not material Source Operational Programme for Tounsm 1994-1999 page I and The Economic Effect of

Tourism in Ireland Tansey Webster 1995

49 Irelands share of most European markets increased substantially but our share of American tourist traffic to Europe declined

410 An additional sub-target established in the programme related to growth in different categories of overseas visitors The growth achieved is set out in Table 45

lbull Targets were also set for regions and tourist categories Such targets included cruerseas visitor numbers TfVenue and employment

Total revenue included proected spending by visitors from Northern Ireland Irish Operational Programme for Tourism 1994middot1999 Prior Appraisal Fitzpatrick and A ssoczates 1994

Table 45 Overseas visitors 1988-1993

Categories Visitors Target Actual 1988 increase 0o increase 0o

Tourist 810000 147 100

Visit to relatives 919000 59 7

Business 438000 53 13

Other reasons 178000 78 31

Overall 2345000 90 42

Note This target was based on the information available when the programme was being

compiled Source Tourism and Travel 1994 Central Statistics Office and Operational Programme for

To1msm 1989-1993

4 11 The growth in all categories of overseas visitors was below target The largest increase was in those who cited tourist as the reason for their journey While in 1988 this category accounted for fewer visitors than the visit to relatives category by 1993 it accounted for some 16 million visitors or 66 per cent more than the category visit to relatives

4 12 The importance of tourist as compared with other overseas visitors is that they spend substantially more money in Ireland than other visitors In 1993 their average expenditure was 50 per cent more than that of the visit to relatives category 27

413 Programme expenditure and the number of overseas visitors to the regions and their expenditure were monitored by Bord Hilte Expenditure by overseas visitors increased in all regions by between 23 and 71 per cent

Overseas Visitors

414 Overseas visitor numbers showed little growth from 1981 to 1986 A substantial growth in tourism began in 1987 experienced a slight reverse in 1991 in the aftermath of the Gulf War and continued to 1994 The increase in tourist numbers between 1991and1994 was only two thirds of that recorded in the period 1987 to 1990 CSO data on the historical trend in visitor numbers is set out in Figure 41

27 Toumm and Travel 1994 Central Statistics Office

Tourism

Figure 41 Overseas visitors 1981-1994

4000 --middotmiddot

3500-middot---middot

3000 - shy -middotmiddot---middotmiddot

-oshy0 2sooshy ---middot

~ ~- 2000shyBs

rn gt 0

1500n-1000 _middot ll e

~ Iz I

-middot--shy

rmiddot

J 11 shy

i-shyIshyL

middot

1901 1902 1983 1904 1905 1906 1987 1908 1909 1990 1991 1992 1993 1994

Contribution of Tourism to the Economy

4 15 The economic contribution of tourism is reflected mainly in its impact on

bull Gross National Product bull Balance of payments bull Employment

These have been quantified as set out in Table 4628

Impacts on GNP and employment are esttmaud using Input-Output analym Direct and indirect spending induced expenditure for international tourism and some assumed government recycling ofExchequer revenue is included For a desmptton see 71ie Economic Impact oTounsm Deane and Henry Irish Bankmg Review Winter 1993

Table 46 Economic impact of tourism 1988-1993

1988 1993

Tourisms contribution to GNP 54 70

Tourism surplus in balance of payments pound210m pound533m

Employment sustained 67600 91900

So11rces Tourism in Focus (Preliminary Tourism Staustics I 994 Bord Fa1te Tourism and Travel 1994 CSO The Economic Impact ofTourism Deane and Henry Irish Banking Review Winter 1993 and The Economic Effect of Tourism m Ireland Tansey Webster 1995

Attributability

4 16 Taking visitor numbers as a key indicator it can be seen that attributing changes in performance during the period of the programme to the investments carried out under the programme would not be sustainable for the following reasons

bull The programme was agreed at the end of 1989 and provided for some retrospective funding (in 1990) of expenditure incurred in 1989 on the public sector measures In addition investment in private sector measures commenced in 1990 and was very slow to get off the ground It is clear then that the programme could not have played an important role in the substantial increase in overseas numbers from 1987 to 1990 inclusive

bull Almost 70 per cent of aid was directed towards capital projects many of which did not open until late in the programme Consequently the impact of these investments would be more likely to occur over the 1994-1999 period and beyond

A particular difficulty in assessing the impact of the programme is that not all ofbull the public funds applied to tourism development were channelled through the programme In 1993 public funding applied to programme measures amounted 10 pound446m In the same year Bord Fiil1e spent pound316m on tourism development outside the programme

bull Further tourism spending was undertaken by the Office of Public Works (OPW) and Shannon Development Tourism related spending also occurred under the LEADER programme and the Operational Programme for Rural Development

Incl11ding Ll3m under the INTERREG Community Initiative

Tourism

G In addition tourism growth in the period is likely to have been influenced by

the devaluation of the Irish pound in 1986 liberalisation of air transport and subsequent impact on ferry services containment of price inflation promotion activities outside the programme

417 These multiple influences and delayed effects suggest that comprehensive evaluation might best be approached by attempting to gauge the effect of aggregate State interventions Such an evaluation might best be undertaken in early 1996 when all projects have been in operation for some time and their impacts may be realistically assessed This evaluation would also contribute to the mid-term review of the new tourism operational programme

Results of Evaluations

418 While no formal evaluation was carried out the programme was reviewed in order to inform the choice of measures for inclusion in the 1994-1999 programme These reviews concluded that

G at a general level there was significant growth in both tourism volumes and tourism revenues during the period 1989-1993 but

bull it was not possible from the information available to assess the extent to which these developments were due to measures undertaken under the programme or would have occurred anyway

419 There was no specific evaluation of individual measures under the programme with the exception of assistance towards private sector marketing to which pound16Sm of public funds was applied

Evaluation of the Marketing Measure

420 The evaluation of the private sector marketing measure concluded that it was a significant contributing factor in the success of Irelands overall tourism performance However a number of points were made about the focus of the measure including

O The CSF Evaluatwn and Recommenda11onsfor the 1994middot1999 Framework ESRDKM 1993 and Irish Operational Programme for Tourism 1994middot1999 Prior Appraisal F1tzpamck and Associates 1994

7he Operatwnal Programme for Tourism 1989middot1993 The Markeung Measuremiddot Review and Recon-1mendacions Touris1n and Leisure Partners 1994

___________Regional Development Measures

bull An apparent shortcoming was the absence of a clearly defined set of criteria of eligibility in respect of defined activities and levels of assistance This lack of definition led to confusion and was adversely commented upon by many within the industry

bull Since 36 per cent of grantees received cumulative grants of less than pound1000 this begged the question as to

the extent to which this level of assistance was necessary in order to secure the marketing activity andor the additional expenditure

the overall impact on effectiveness of disparate marginal additional expenditure

the cost of evaluating administering and processing grant payments of this level

bull Recipients of larger grants were generally carriers and charter and tour operators which had resources and capability to effectively undertake marketing activities of a scale where one could justifiably anticipate a cost-efficient return on additional marketing investment

421 In regard to admini-tration the consultants noted that full powers of decision on the detailed approval of funds (within an agreed overall budget allocation at the start of the year) were delegated to a group of senior managers in the head office of Bord Fiilte and to the managers of the overseas markets There appeared to be no limit on amounts approved per activity or per applicant organisation which would require recourse to a supervisory committee or top management at head office

Information Requirements

422 Information is vital in underpinning evaluations and focusing measures While monitoring of programme activity and progress was good a particular deficiency noted in the course of the examination was a lack of information on the performance of supported facilities and the results of marketing investments Key information in this regard would be

bull the number of visitors availing of supported facilities bull the financial performance of such facilities bull employment created or sustained by them

423 The Department of Tourism and Trade (the Department) considers that the co-tshyeffcctive capture of such information would rule out a comprehensive collection of

Tourism middot---middotmiddot-----------------------shy

performance data from all assisted projects However it recognises chat there is merit in sampling tourist products in order to altSess their performance contribution and level of dependence on other key tourist attractions

424 In the case of marketing investments the establishment of a mechanism to enable bookings and enquiries by potential tourists to be sourced back to marketing investments would also greatly facilitate evaluation The Department has informed us chat this is being pursued in a number of current marketing campaigns

425 While visitor perceptions arc being addressed matters which need to be followed up include

bull gauging the perception of tourism professionals bull establishing the factors which determine the decisions of tourists in choosing

holiday destinations

Other Findings

426 The number of Departmental staff devoted to the programme appears to have been insufficient to administer a programme of this size and complexity Currently only four staff are responsible for administration of the Tourism Operational Programme 1994-1999

427 While early in the life of the programme progress reports were produced every six months subsequently production of these reports lapsed At August 1995 the latest available progress report covered the period to December 1992 Associated with the delay in finalising progress reports the drawdown of ERDF funds for 199394 was also delayed At August 1995 some pound72m had not yet been claimed from the EU

I 428 The examination found the post implementation monitoring of projects by Bord i Failte was not adequate and its payment approval procedures were criticised in an

independent study of the private sector marketing measure

429 A particularly important issue that arises is the extent to which private sector projects assisted under the programme would have gone ahead in any event No attempt was made to gauge this deadwcight effect for the programme

430 However an independent survey of over 130 tourism enterprises which had received grant aid in the period 1988-1993 (including Business Expansion Scheme and International Fund for Ireland projects) was carried out by the University of Ulster

A Regional Anay51s of To1msm Growth m Ireland K Hannigan Regional Studies 28(2) 1994

Regiorul Development Measures

431 The findings indicated that the deadweight effect varied greatly with the size of firm Some 80 per cent of medium-sized firms defined as those employing 6-20 employees (in terms of full-time equivalents) indicated that investment would not have gone ahead without the grant-aid while 30 per cent of smaller firms and 38 per cent of larger firms thought the grant-aid was crucial With regard to employment creation the study indicated that the proportion of jobs achieved amounted to 88 per cent of those forecast However given the deadweight factor many of these jobs would have been created in any event The study estimated that 50 per cent of the jobs claimed would have been created without any assistance

432 All the issues raised in this section are dealt with in greater detail in Appendix E

Chapter 5 Small and Medium Industry

Background

A series of measures to assist small and medium-sized enterprises was included in the Operational Programme for Industrial Development 1989-1993 (the programme)

52 The measures were designed to contribute to the overall objectives of the programme which set out to create 20000 gross job gains per year over its life

General Objectives of the Measures

53 The main objectives of these measures were

Small Industry Measures

bull the development of small firms with a proven track record and high growth potential into substantial companies capable of competing internationally

bull the promotion of a high rate of formation of new firms and expansions of existing firms in order to provide sustainable jobs at a reasonable cost to the State in different regions of the country

bull the creation of 5400 gross jobs per year

Medium-sized Industry Measures

bull the stimulation of an increased flow of investment

bull the generation of an increased number of significant export-orientated development initiatives from existing Irish industry and emerging Irish growth companies~

bull the strengthening of the management and key business functions in firms to enable them to compete internationally

54 Appendix F outlines the administrative arrangements

Gross ob gains are all ob gains on a company bam arising in an Annual Employmeni Survey year and above the companys ernpoymenl level in the preuious year

Expenditure

Small Industry Investment

55 An estimated pound604m was spent on measures designed to assist Irish-owned small business The total public expenditure amounted to pound225m including pound17m sourced from the ERDF and was invested as set out in Table 51

Table 51 Public expenditure - small industry 1989-1993

Measure Forecast Actual poundm poundm

Enterprise Development 1032 948

2 Mentor 052 064

3 Software Support 113 IOJ

4 Irish Productivity Centre 321 270

s Business Innovation Centres 170 271

6 Niche Studies 086 057

7 International Services 946 539

Total 2720 2250

Source Operational Programme for Industry 1989middot1993 Final Report Department of

Enterprise and Employment

56 A further pound37 9m is estimated to have been spent by the private sector

Medium-sized Industry Investment

57 An estimated pound546m was spent on measures aimed at assisting Irish owned mediumshysized enterprises Public expenditure of pound127m including pound86m sourced from the ERDF was incurred on the measures set out in Table 52

Table 52 Public expendituremiddot medium-sized industry 1989-1993

Measure

Advisory Support

2 Investment in New Facilities

3 Technology Acquisition

4 lnmiddotCompany RampD

5 Equity

6 AnalysesStudies

Forecast poundm

084 middotmiddot-shy

Total 12488

Actual poundm

051 middot---shy12694

Source Operational Programme for Industry 1989middot1993 Final Rltport Department of

58 A further pound4188m is estimated to have been spent by the private sector

59 The background objectives outtum and evaluation of each measure to support small

and medium-sized industry is set out in Appendix F

510 The aim of the measures could be summarised as follows

bull increasing the number of business start-ups

bull increasing the average size of firms

bull increasing the penetration of indigenous firms in the traded sector

bull raising investment levels

bull creating employment at national and regional level

511 The features of the strategy adopted appeared to be

bull a selective approach concentrating resources on the development of firms with

growth potential

bull an integrated approach to company development which focused on the overall

strategic development plans of companies rather than on individual development

initiatives

512 All the objectives of the measures appeared consistent with the overall objectives of

the programme In general the quantifiable objectives of measures were met The

Technology Acquisition measure (medium-sized industry) was an exception as there

was a poor uptake on this measure

Achievement

513 The achievement in terms of job creation for each set of measures is set out in Tables

53 and 54

Table 53

Job creation - small industry 1989-1993

1989 1990 1991 1992 1993 Total

Gross jobs targeted 5400 5400 5400 5400 5400 27000

Gross jobs created 8110 6803 5778 5169 6015 31875

Gross job losses 5744 7425 6711 6499 5560 31939

Net jobs created 2366 (622) (933) (1330) 455 (64)

Source Department ofEnterprise and Emplayment

Table 54 Job creation - medium-sized industry 1989-1993

1989 1990 1991 1992 1993 Total

Gross job losses 5673 3179 5682 6712 5858 27 104

Net jobs created (292) 3528 (40) (452) (1099) 1645

Source Department ofEnterprise and Emplaymenr

514 The overall gross job creation target for small industry was well exceeded and the

target for medium-sized industry was also achieved However net job gains were

negligible for these two sectors over the life of the programme

Evaluation Process

515 An external evaluator produced two extensive reports in 1991and1994 on all subshyprogrammes and measures The Department of Enterprise and Employment (the Department) produced a mid-term review in 1992 and a final report in 1994

516 The Department set up two key units to oversee and evaluate the programme

bull the EU Structural Funds Co-ordination Unit bull the Industry Evaluation Unit

Appendix F briefly outlines the work of these units

Evaluation Outcome

517 Apart from evaluations carried out on the programme by the external evaluator and a review of the Enterprise Development Programme by the Department in 1991 few evaluations were done on individual measures (see Appendix F for further details) The establishment of the Industry Evaluation Unit in March 1993 has gone some way towards addressing the evaluation deficiency at measure level and is seen hy the Department as a key instrument in such evaluation

518 Subject to the principle of proportionality (relating evaluation act1v1ty to the materiality of the expenditure) it is desirable that on-going evaluation of measures be performed on a regular basis to ensure that resources are targeted in the most cost-effective manner

519 The Department considers that evaluation will be adequately provided for in future by

bull external evaluation of the programme bull studies by the Industry Evaluation Unit bull an on-going study programme by Forfas

External Evaluation

520 In their first report which was completed in December 1991 the external evaluators found that the measures included in the programme were generally working as

Deloiue and To11che

7he Department also reviewed che performance oflrishmiddotowned industry over the period 1980shy1990 and the effectiveness ofgram support Derails are contained m Appendix Jmiddot

intended The evaluators were of the view that major changes were not required in the structure of the programme However they did feel that greater anention should be given to monitoring the effectiveness of the measures In summary the evaluators concluded that

bull programme development and refinement should be focused so that resources are not over diluted and that both short and long term costs and benefits are reflected

bull the monitoring and evaluation should reflect the aggregate levels of support received

521 The second report of the evaluators in March 1994 concluded that the two sets of measures were fairly well directed

bull In relation to small industry the external evaluator noted that employment targets were generally met but there was a problem with job retention The employment creation target of 5400 per annum was exceeded in all years except 1992

bull In relation to medium-sized industry the external evaluator noted that the gross annual employment creation target of 5600 had proved difficult to attain

Management Information

522 Information on progress achievement and the status of companies is available from the following sources

bull an industrial database bull annual employment surveys bull surveys of Irish economy expenditures bull a targets monitoring system

These are considered in detail in Appendix F

Evaluation Deficiencies

523 The type and extent of effectivenessimpact indicators employed throughout the course of the programme to chart the progress of individual measures were largely inadequate to facilitate evaluation The external evaluators stated that the lack of adequate information was a recurring problem when making value for money

The provisional figures available to the evaluators on job rreation have subsequently been substantially adjusud and over the life ofthe programme the target for medium-sized industry has in fact been exceeded (see Table 5 4

evaluations on specific measures Many of the indicators used throughout the life of the programme described inputs and activities rather than outputs or impacts The Industry Evaluation Unit reported that while 71 per cent of the indicators described inputs and activities only 27 per cent related to outputs

524 In their final 1994 evaluation the external evaluators suggested the compilation of statistics necessary for a detailed evaluation of each measure They suggesced that evaluation of impact on assisted firms be based on a small number of performance indicators and on survival rates Performance indicators suggested included

tgt sales o return on sales o profit levels o return on capital employed fgt value added fgt employment o average remuneration levels

Response to Evaluation Deficiencies

525 According to the Operational Programme for Industrial Development 1994-1999 detailed performance indicators will be established for each measure and action

526 The Department has considered the question of impact indicators in consultation with the EU Commission and has recently informed us that it has adopted a range of performance indicators and is collecting related data

Impact of Industrial Support

527 The impact of individual measures at firm level will vary but can to some extent be gauged by the following means

o analysis of the actions taken by companies on foot of State support in terms of

the number of start-ups the number of firms expanding and rate of expansion the number of business linkages established between firms

-------- ___R_cegional Development Measures

bull analysis of final outcomes (including their duration) in the key areas of

employment sales profitability

bull a survey of anitudes of targeted firms to elicit their perception of the assistance

528 One of the main problems which arises in assessing the effectiveness of any measure is determining the extent to which any particular impact or outcome can be attributed to a specific measure or intervention Where a firm availed of a range of support services under various measures it is difficult in practice to anribute an outcome for example an increase in export sales to any particular measure

529 The gathering of information on the achievement of assisted firms is however a necessary first step to enable a deeper analysis of the causes of the outcomes observed Since firms could avail of a number of measures it is necessary to take account of the impact of all assistance availed of in gauging the effectiveness of industrial supports

530 In order to assess such effectiveness the following information would need to be available preferably on a central database

bull industrial development support to individual firms from all agencies

bull the progress of assisted firms in terms of profitability employment and sales over time

bull comparable data in respect of non-assisted firms

Statistical techniques could then be used to relate the firms progress to the number and level of supports availed of and their interaction

531 The compilation of an industrial database by the Department will assist in this analysis However there is a need to improve the Departments capacity to evaluate by

bull including all assistance on the database

bull carrying out a statistical analysis of the relationship between the assistance and the performance of the supported firms

Sectoral Impact

532 In regard to sectoral impact the external evaluator noted that within indigenous industry resources were targeted on the electronics engineering pharmaceutical natural resources and international service sectors However no evidence was presented on the relative performance of these sectors except to mention that

over the period 1989-92 60 per cent of job losses on both the indigenous and overseas side occurred in food metals and engineering clothing footwear and leather sectors and these sectors (excluding food and engineering) do not receive explicit recognition in the target groups

An Evaluation ofthe Sub-Programme for Small and Medium Sized Irish-Owned Industry 89middot lJ Deloitte and Touche

-------------- -middot

Chapter 6 Marketing

Background

61 A set of marketing measures (the measures) was included in the Operational Programme for Industrial Development 1989-1993 (the programme)

62 The main aim of the measures was to improve the overseas marketing capability of Irish small and medium-sized enterprises (SMEs) in order to overcome the marketing constraints imposed by a small under-developed domestic market with per capita incomes of two-thirds of the EU average and located on the geographical periphery of Europe It was also intended to assist Irish firms selling on the domestic market to

overcome their marketing deficiencies and compete effectively in the single market

63 The main target of the measures taken together was to help increase output and employment in Irish industry by increasing the expons of Irish SMEs from pound25bn in 1988 to pound45bn by the mid 1990s

Activities

64 A wide range of services was provided by An Bord Trachtila (ABl) to Irish industry under the measures These services included

egt supplying market information egt advising firms egt organising promotional events ltgt providing finance for marketing activities

Appendix G outlines the measures and the administrative arrangements

65 In general the maximum assistance received by firms was 50 per cent of eligible costs However assistance for Targeted Marketing Consultancy was given in the form of both grants and loans subject to an overriding assistance limit of two-thirds of eligible expenditure

Expenditure

66 An estimated pound313m was spent on the measures Of this private spending amounted to an estimated pound199m 75 per cent (pound85m) of the total public expenditure of pound114m was provided from the ERDF Public expenditure under the programme is set out in Table 61

Private spendingfigum are estimategt based on the application ofa factor of 115 to eligible expenditure This factor was estimated by ABT in 1988 and IS currently under review

___________R~eg~io_n_a_if)_lopmeni Measures

Table 61 Public expenditure - marketing measures 1989-1993

Measure Forecasta Outtum poundm poundm

Market Developmentb 237 310

2 Marketplace Services 105 89

3 Market InformationResearch 129 156

4 Design and Product Development 31 35

5 Promotions 168 164

6 Regional MarketsInternational 339 166

7 Targeted Marketing Consultancy 282 218

Total 1291 1138

Notes Original Operational Programme forecast adjustedfor exchange ratesinflation b Four further measures administered by the former Irish Goods Council to assist firms

in the domestic market were amalgamated with Measure I from January 1992 and are included under Measure

So11rce Operational Programme for ndmtry final report ]1me 1994

67 It had been anticipated that eligible annual spending on marketing measures would more than double between 1989 and 1993 The increase was somewhat less than expected with pound29m being spent in 1993 against an original projection of pound40m ABT has pointed out that this reduction was the result of Exchequer funding constraints rather than any lack of demand for its services

Export Achievement

68 ABT concentrated its assistance on companies whose marketing financial and management functions were deeply rooted in Ireland While it is generally recognised that the performance of indigenous industry is particularly important for economic development no single definition of indigenous is entirely satisfactory

69 The export outturn of the firms surveyed by ABT during the period 1988 to 1994 is set out in Table 62

Operational Programme for Industrial Development 1989-1993 Operational Programme for Industrial Development Annual Report 1993 Annex Department ofEnterprise and Empluyment 1994

Markeung

Table 62 Export outturnbull - indigenous finns 1988-1994

Year Exports poundbn

1988 27b

1989 30

1990 32

1991 34

1992 37

1993 middot40

1994 46

Notes bull The figures include certain services sector exports and certain food exports with a value ofsome poundbn per annum responsibility for the lauer passed to An Bord Bu from I December 1994

b Revised outturn

Source An Bord Trachtdla

610 ABT further analyses these figures by sector and market However aggregated performance measures such as those quoted in Table 62 can at best give a general indication of achievement They cannot readily be related to expenditure under the n1easures since

bull other factors impact on export performance including other Government supports

bull the aggregated performance measures include some firms which received no assistance

611 The Department of Tourism and Trade is currently examining the definition of indigenous and the figures for export achievement in Table 62 in order to refine them so that they measure more accurately the exports of ABT clients

Regional Development Mea51res

Evaluation of Outturn

External Evaluation

612 The external evaluator produced reports in 1991 and 1994 The Department of Enterprise and Employment produced a mid-term review in 1992 and a final report in 1994

613 The overall conclusions of the external evaluator on the marketing measures were

bull Much was accomplished in regard to improving the marketing capability of Irish SMEs with indigenous exports of pound37bn in 1992 being achieved in the face of adverse economic conditions The EU is our main market with Great Britains share of our exports declining in recent times

bull There was no significant duplication between marketing and other industry measures

bull Since physical targets were met within budget it was reasonable to conclude that value for money was achieved

614 In general the external evaluator recommended

bull more detailed external evaluation of specific measures as they found ABTs internal evaluations to be more statements of affairs than critiques

bull a greater emphasis on

in-company marketing training development of specific supports for the internationally traded services sector and new start-ups expansion of ABT support for logistics and market access

615 The external evaluation concluded that if Ireland is to continue the process of strengthening the export market orientation and capability of its indigenous SMEs the investment in these measures must be maintained

Deloiue and 70uche 1bo evaluated che encire Op~ational ProgramnJe for Industrial Developnunl

Ma_rketmg

Evaluation at Measure Level

616 In addition specific evaluations were carried out on certain measures These (valuations noted two key information deficiencies identifying

o the need to survey users of the services o the need to track the performance of firms which bcnefitted from the measures

Details of evaluation findings in respect of individual measures are contained in Appendix G

Departmental Evaluation

617 An Industry Evaluation Unit was established in the Department of Enterprise and Employment in 1993 This Unit is carrying out an analysis of the effectiveness of ABT supports to industry

Possible Approaches to Future Evaluation

618 The impact of assistance to firms towards their marketing acuvmcs could be measured by the examination of a number of key indicators such as

o export performance o user perceptions o independent marketing capacity

619 The quantification of export performance is a fundamental prerequisite to enable evaluation to occur However an even more informative analysis can be achieved if other quantitative information is either gathered or derived Consideration should be given to the compilation of the following indicators

o export propensity o export diversification o market share o profitability

These indicators arc outlined in detail at A ppcndix G

bulll Fimzs developing marketinK capacity which is not clepe1ulenl 011 firther State support

Regional Development Measuregt

620 The final mcorporauon of data from ABT into the industrial database of the Depanment of Enterprise and Employment is imponant as it will provide information which will underpin future evaluation

621 Establishment of the impact of the measures on the expon performance of assisted firms is a necessary first step to the evaluation of the overall effectiveness of marketing interventions by the State

622 The direct employment effect associated with this expon impact could be gauged from output-employment relativities derived for each sector Other economic effects including the impact on GNP could be assessed using techniques such as Input-Output analysis

Other Issues

Administrative Performance

623 There was a sizeable increase in marketing expenditure and a relatively small increase in ABTs administrative costs accompanied by a reduction in staff numbers Fullshytime staff nwnbers decreased from 286 in 1988 to 238 in 1993 a reduction of 17 per cent In constant prices (derived by applying the Consumer Price Index) gross spending increased by 53 per cent and administrative costs increased by 12 per cent between 1988 and 1993 This tends to indicate satisfactory administrative performance by ABT over the period

Cost Recovery

624 ABT supplied many services to firms under the measures including information advice finance and introductions for which it recovered some of its outlay

625 Overall there was little change in cost recovery over the period However an analysis by measure indicates that variation occurred during the period with the percentage recovery on older more established measures reducing from 136 per cent of annual gross expenditure in 1989 to 93 per cent in 1993

626 New measures accounted for pound3 lm of ABT receipts in 1993 This is practically all of the increase in cost recoveries over the period of the programme

bulll Full details ofcost recoveries in 1993 are contained in Appendix G

Measures 6 and 7 and part ofMeasure Imiddot the Sales Perfonnance Incentive Scheme

Marketing

627 If the cost recovery rate for older measures had remained at 136 per cent for 1993 receipts from these measures would have been of the order of pound4 lm instead of the pound2Sm that was achieved This would have reduced ABTs reliance on public funds in 1993 by some pound13m

628 It is recognised that the opportunity to effect recoveries in the case of some of the older traditional services may not exist to the same degree as in the case of the recent innovative measures some of which have inbuilt recovery elements (including loan arrangements) There would however appear to be merit in reassessing the extent of cost recovery under the various measures in view of the decline in the rate of recovery for older measures

Chapter 7 Water and Sanitary Services

Background

71 A set of measures costing pound222m was included in the Operational Programme for

Water Sanitary Services and Other Local Services (the programme) The EU provided 50 per cent of the funding

72 The objectives of the programme were to facilitate development in the main sectors

of the economy and to protect public health and the environment

Expenditure

73 The financial ounurn of the programme is set out at Table 71

T2ble 71

Programme expenditure - water and sanitary services 1989-1993

ForecastJ Outturn poundm poundm

Sewerage Urban development 176 5214 Environmental protection 2652 2652 Multi-purpose 5262 5294

Water Rural development 3582 3520 Urban development 2960 2946 Multimiddotpurpose 2338 2356

Other local servicelt 200 200

Technical assistance 014 006

Total 22184 22188

Notes bull 1his is the revised forecast b Schemes designed to impact on a number ofsectors of the economy

Source Operational Programme Annual Report 1993

Programme Control

74 Considerable difficulty was experienced in introducing a suitable system to manage and control the programme The EU Commission sought tO have concrete or measurable criteria tO assist in project selection and measurement of physical progress It appointed consultants in 1990 to make recommendations in this regard

UCD Environmental lnscitule

---middot ---------------------- shy

_______R~li~onal Development_Mea_s_u_re_s___________

Measurement of Progress

75 Following discussion between the Department of the Environment (the Department) and the consultants measures were identified and targets were established Targets were set on the basis of the minimum progress expected over the life of the programme

Project Selection

76 The recommendations of the consultants on project selection criteria came too late Lo influence the decisions on project selection The consultants reported in December 1990 which was two years into the programme

Programme Content

77 The set of projects comprising the programme constituted only part of the overall water and sanitary services programme of the Department Programme elements changed from year to year with substitution of schemes for those originally selected Schemes were included in the programme on the basis of selection from

bull a list of projects which commenced in 1988 and 1989 bull an indicative list of projects scheduled for 1990-1993

78 In the Departments view adopting a fixed programme was not a viable approach and was not desirable since it was necessary to allow flexibility for

bull changing priorities in the choice of projects over time bull adapting to the rate of progress of schemes at both the planning and construction

stages

79 For purposes of the operational programme targets determined with the assistance of the consultants were adopted While initial physical targets were set in relation to 115 schemes the final report of the programme was prepared on the basis of 101 schemes classified as follows

bull completed 88 bull at construction4

pound45m ofreported programme expenditure IS attributable to these projects Most ofthe proects are being completed using co-financed funding from the Operational Programme for Environmental Services 1994-1999 although the remaining works on some ofthese may be met from the Fxchequer In 1994 a total ofpound36 llm was spent on these projects and it IS estimated chat a further pound4m will be required in 1995 to finalise them

Water and Sanitary Services --middot -----

Programme Outtum

7 I 0 For the purpose of the programme targets were set and output was measured in terms of physical infrastructure such as the length of pipeline constructed the number of treatment works or the number of pumping stations Since each project can have a different specification accounting for output on the basis of construction in nominal terms is unsatisfactory It is suggested that consideration be given to measuring output for each type of project in terms of capacity at standard rates of functioning

7 I I In the course of our examination it proved impossible to relate programme output to targets for the following reasons

the mix of projects originally envisaged when the targets were set continually altered in the course of the programme the outputs reported did not capture the true programme outtum outputs reported were measured in terms which were not susceptible to aggregauon

712 The programme output reported is not fully reliable being distorted by the following

1gt Some projects which were included at the end of the programme were partly financed outside the programme However physical progress was in these cases reported for the entire works carried out

1gt Projects removed from the programme but which were partly funded from it were not reported as outputs

713 The targets and outtum reported by the Department for the water supply measures arc detailed in Tables 72 and 73 below while Tables 74 and 75 set out targets and results for the sewerage measures While it would be misleading to compare these aggregate targets and outturns for the reasons set out in paragraphs 710 to 712 there is an apparent general underachievement which ought to be investigated by the Department

-------middot middot---middot--middot--middotmiddotmiddot-----shy

Regional )_11Jelopment Measures

Table 72

Programme targets middot water

Indicator

Trunk mains provided (metres)

Distribution mains provided (metres)

Number of intakes

Number of pumping stations

Number of treatment works

Number of reservoirs

Number of water towers

Targets

400000

115000

Source Revised Technical Sheets agreed by the Department and VCD Environmenwl lnstituu

Table 73

Programme output middot water

Indicator

Number of intakes

Projected outturn

166458

________W_a_te_r_and Sanitary Serv_z_ces____

Table 74 Programme targets - sewerage

Indicator Targets

Sewers provided (metres) 305500

Number of pumping stations 61

Number of treatment works primary 3

secondary 30

tertiary 3 36

Source Revued Technical Sheet5 agreed by the Department and UCD Environmental Institute

Table 75 Programme output - sewerage

Indicator Projected outtum

secondary 19

tertiary 7 28

Measurement of Impact

714 Impact indicators had also been specified by the consultants appointed by the EU The Department prepared reports on the impact of the individual measures for a midshyterm review in June 1991 and for a progress report of June 1992

715 Impact was monitored largely on the basis of

bull the number of schemes which contributed to

upgraded infrastructure removal of development constraints advanced provision of services sewage pollution elimination in internal waters increased protection of fishery river catchments

------------middot -middot middotmiddot-middotmiddot

Regional Development Me_~u_r_er___

bull the volume of

water storage capacity sewage treatment capacity

716 However after June 1992 these impact indicators were not compiled Accordingly a comparison of the expected impacts of the programme with actual performance cannot be made

717 The Department stated that the compilation of impactutilisation indicators was discontinued because the results were not useful in the format in which they had been produced and because the inordinate amount of time devoted to compiling them could not be justified The Department had anticipated that relevant indicators would be compiled as part of an evaluation of the programme However due to time constraints the evaluators adopted a selective approach and did not compile the indicators

Programme Evaluation

718 The main findings from an evaluation on investment in water and sanitary services were

bull while the programme contributed to economic growth its precise contribution to employment growth industrial development and tourism could not be isolated

bull projects funded increased water and sanitary services capacity by

386000mI day in the case of water supplies 451SOOmday in waste water collection

bull the programme contributed to satisfactory water quality and to the improvement of beach quality

Fitzpatrick Associates

bull7 Economic Consulrancy on Environ1nenral Programmes WaterSanitary Services and poundNVREGmiddot Fitzpatrick Associates December 1993

No comparison was made with the capacity increases which the investment could have been expected to achieve

bull while expenditure for the first four year of the programme had been over budget the type of records maintained by the Department was inadequate to allow the causes of the overspending to be isolated

719 The evaluators highlighted deficiencies in data collection and assimilation and stressed the need for more research on the environmental and economic impact of water and sanitary services investment

Appendix H sets out the evaluation findings in greater detail

Adequacy of Evaluation

720 Evaluation of water services investment is difficult since projects have multiple aims including

bull removing capacity deficiencies bull bringing services up to minimum quality levels bull positioning areas for future development

721 Accordingly future evaluation may have to be based on intermediate indicators of impact including

bull capacity increases bull improvements in water quality and service reliability bull changes in the quality of receiving waters in the case of sewage treatment

Such evaluation issues are considered in greater detail in Appendix H

Project Review

722 As part of our examination 11 project files were reviewed 9 of which were carried out under contract while 2 were completed by local authority labour

723 The projects concerned were planned and designed before the drafting of the programme As a result there was very little documentation on the project files relating the specific projects to the programmes objectives

The Department stated that this resulted at least in part from the fact that final accounts on schemes are not normally available until 2 or 3 yean after the scheme has been substantially completed

_____R_eg~9na~ Developme~t Mez_~u_re_s_____ _ ____

724 The review indicated that there were large cost variations at the different stages of project completion Generally cost estimations at the preliminary repon stage differed substantially from design stage costings which in turn tended to increase at the tendering stage In some cases cost at design stage became irrelevant because the schemes were delayed for considerable periods of time In general final costs of the projects were in excess of the agreed contract costings Table 76 below details the cost estimates of schemes at the different stages of construction

Table 76 Selected water and sanitary services project estimates and expenditure

Scheme Design Tender FinalLast Stage Repon poundm poundm poundm

KellsOldcastle Water Supply 1750 1824 2100

Nonh CathedralCommons Rd Watermainh 0538 0531

Ballina Main Drainage (Stage l)h 0144 0144

Mountshannon Sewerage Scheme 0440 0718 0828

Rosses Regional Water Supply 0400 0425 0619

Loughrea Regional Water Supply 0744 1248 1288

Carrigaline Water Supply 0680 0790 0819

Bailieborough Sewerage Improvement 0601 0905 1093

Bandon Sewerage Scheme 2023 2244 2768

Longford Main Drainage 4704 5026 6731

Castlcisland Sewerage Scheme 2743 3436 4296

Notes bull It is not possible to give the final cost mall cases as final accounts can take two to

three years to produce h No tender amount Work done by local authority labour

725 Price variations for labour and materials which had already occurred were not taken into account in the original grant allocations made by the Depanment to local authorities Consequently allocations tended to be understated

726 In view of this cost drift and the fact that consultant engineers fees arc based on a percentage of the contract value which does not act as an incentive to control costs there may be merit in considering other options such as design and build arrangements

Water and Sani-1ry Services

727 In the Departments view the prime objective of the present contra~t system is to get competitive and value for money tendering Accordingly the onus is put on contractors to claim for cost increases as opposed to building in contingency sums to deal with risk and uncertainty It recognised that this poses a problem in terms of profiling of expenditure for programmes where projects can be at various stages of planning and subject to variation in estimation of cost The Department docs not dispute that in individual cases the system entails cost increases due to contractor claims but overall it is still considered the most effective procurement method The Department however is considering the use of design and build which it feels may be applicable in certain circumstances

Reporting of Expenditure

728 Reporting of expenditure on projects by local authorities appeared inadequate In some cases there were inconsistencies in the amounts reported for different components over time The reporting of expenditure by local authorities did not include an analysis of contracts on the basis of their main elements or report on percentages completed

729 There were no reporting requirements which compelled local authorities to report expenditure at a particular point in time rather the local authority applied for a grant drawdown when substantial expenditure was incurred

730 While the Department monitored contract costs closely items such as resident engineers salaries administration and miscellaneous costs appeared to be responsible for substantial increases In some cases additional cost classifications were introduced without explanations In the cases examined it appeared that local authorities were usually slow or failed to break down expenditure under general headings

731 Local authorities generally failed to alert the Department where the total final cost of schemes was expected to be in excess of the amount predicted at the tendering stage until the initial grant allocation had been absorbed It was noted that revised cost estimates at this stage could also be understated

7 32 On the schemes which were carried out by direct local authority labour there seemed to be less emphasis placed on securing cost estimates of project elements and with the reporting of final expenditure However both of the projects carried out by direct labour came in on budget

733 In 1995 local authorities were notified of revised financial and monitonng arrangements for schemes and these are now in place The monitoring of all schemes is being brought into line with the monitoring requirements for Cohesion Fund

Regional_Development_feasures

schemes which require local authorities to give a detailed breakdown of expenditure and of the extent of project completions under a number of headings

Tendering

734 The tendering procedure as operated by the local authorities generally worked well with contracts being awarded on the basis of the lowest tender or an assessment of the most appropriate tender submission

Physical Conditions

735 Ground conditions varied from those expected from preliminary investigations This resulted in increased costs due to additional works and materials being required and additional claims from contractors based on adverse ground conditions not identified during site investigations By their nature such investigations can only examine a limited but representative sample of the proposed site and so cannot reveal all potential problems

736 In addition there was evidence that the records of old schemes were incorrect and evidence of previous works not being as expected when the latest project was being carried out In one case an existing watermain diameter was 75mm and not IOOmm as expected while in another existing stopcocks and chambers were found to be defective In a further case a sewer laid in earlier works was too deep and had to be re-laid These problems led to cost increases

Final Accounts

737 Final accounts were not on file for two contracts apparently because the outtum costs of the contracts were less than the tender amounts The Department therefore had no documentary evidence of what output was received for the pound230000 involved and how it compared to the original Bill of Quantities

738 The Department stated that it is normal practice to require final accounts for all contracts completed including those within budget In the case mentioned final accounts are now being sought for the two contracts

Chapter 8 Pre-1989 Projects

Background

Assistance from the ERDF was mainly administered on a project basisdeg prior to the adoption of the CSF for the period 1989-1993 Table 81 sets out the present position in respect of such allocations according to the records of the Department of Finance (Finance)

Table 81 ERDF allocations 1975-1988

poundm poundm

Original allocation 77526

Net allocations dccommitted to date (3567)

Expected future decommitments (1520)

Total dccommitments (5087)

Net allocations extant 72439 Notes bull Includes all projectmiddotbased allocations prior to the adoptwn ofthe CSF 1989middot1993

b Decommitments are made after notification by a member state that a project is being withdrawn usually due to its failure to proceed as planned

Finance estimate that pound3 08m ofthis allocation remams to be collected Source Department ofFinance

Allocations Decommitted

82 Prior to July 1988 funds allocated to projects which were not progressing could be reallocated to other eligible projects A total of pound8058m was decommined and replaced with other allocations to the extent of pound4491m After financial reforms at EU level in 1988 the facility to substitute new commitments where projects had failed or were withdrawn was removed The consequence of this was that ERDF allocations totalling pound3567m were not recredited to the State

83 Of the pound3567m Finance has informed us that a request was made to the EU Commission in December 1988 to decommit ERDF allocations of pound1237m as the associated projects were not proceeding Finances view is that Ireland should have been allowed substitute other projects to absorb this allocation While this has been expressed in writing to the EU the Commission has stated that the matter is covered by a governing Financial Regulation effective from July 1988 and that recrecliting is not applicable It has refused to concede that any further balance is due to Ireland However Finance has assured us that it intends to pursue the matter further

This means each individual project was separately assisted by the EU

Regional Developmeni Measures

84 The remainingpound2330m ofERDF allocations decommined were mainly due to project failures which only came to Finances notice aher 1988

Further Decommitments

85 Finance estimate that a further pound152m ERDF will be decommitted and not reallocated to Ireland due to other projects not proceeding as planned These projects mainly relate to water services and industrial development

Cause of Decommitments

86 Projects which led to the decommitments included those which either

bull failed to start bull failed prior to submission of completion reports to the EU bull were transferred to Operational Programmes

87 We examined the two main sectors which gave rise to the decommitments

Industrial Development

88 In the case of industrial development projects delays had occurred in claiming aid mainly due to the investment programmes of grant-aided firms proceeding slower than planned A review in 1994 of outstanding projects to which pound124m had been committed indicated that many had been scaled back with qualifying expenditures reducing by pound98m and ERDF aid by an estimated pound49m

Water Services

89 A similar situation was found to pertain in the case of water and sanitary services projects The finalisation situation was complicated by the differing administrative practices of the Department of the Environment (Environment) and the EU

bull The EU administered aid on the basis of claims which were annual and could refer to a number of projects or phases of projects

bull Environment monitored schemes on the basis of discrete phases of projects

810 In order to claim aid documentation was required in the form of either

bull a completion report covering the project or phase of the project finalised bull a statement of expenditure incurred in relation to the allocation

Pre-1989 lrojects

811 It appears that a communication problem occurred in that in all cases until recently Finance was requesting completion reports in order to process EU claims

812 At the time of our examination Finances records indicated that 12 ERDF claims in respect of water and sanitary schemes were not finalised due to the non-receipt of completion reports The ERDF commitment on these claims amounted to pound1455m ERDF aid of pound888m had been drawn down and a balance of pound567m remained outstanding Investigation of the 12 claims showed that in total the outstanding claims comprised applications in respect of 73 individual phases of water and sanitary

services proiects

813 While Environment assured us that reports for all completed schemes had been submitted or that Finance had been informed of cases which did not proceed Finance maintain that some of the documentation received from Environment was insufficient to ground claims on the ERDF for a variety of reasons including

bull lack of reference numbers to allow association of claims with approved schemes bull inability to associate works the subject of the claim document with works

approved

8 14 Environment maintained that completion reports could only be given for schemes as a whole not the annual element which was the subject of an EU allocation The passage of time and their filing systems made it difficult to retrieve information to

answer queries from Finance on specific deficiencies in the claim documentation

815 In 27 of the 73 outstanding cases Environment could not locate the missing details at the time of our examination Our review of the remaining cases where information was available indicated that

bull The time scale between projects being completed by the local authority and the submission of completion reports to Environment ranged from 4 months to 14 years The average time taken was just over 5 years

bull Environment took 8 months on average to transmit completion reports to Finance with the period taken ranging from I day to 5 years However in 4 cases Environment could not confirm the date it sent a completion report to

Finance

____________R~eg~io_n_a_l_Development Measures

Current Position

816 Claims outstanding in 1995 are in respect of ERDF commitments which arc at least 6 years old There was a deadline of March 1995 for submining final claims to the EU in respect of these old projects In cases where no completion report was received Finance has now forwarded the latest statement of expenditure made available to it

817 In the case of both industrial and water services projects the exposure of the State to decommitments was largely eliminated with the move to a programme basis of administration from 1989 However the efficiency of the administrative procedures in this regard is still relevant since the new Cohesion funding is administered on a project basis

818 Environment has assured us that the administrative deficiencies which gave rise to the pre-1989 problems have since been addressed and in particular

bull Steering groups have been put in place for all major projects These groups include representation from the Department local authorities and consultants Local authorities are informed at the commencement of a project of the source of its funding and any EU requirements

bull Quarterly monitoring returns are required from local authorities in respect of all projects

bull Additional staffing resources were made available for the purpose of managing the 1989-1993 operational programme and a separate EU monitoring and financial control unit was established in 1994

Environment have stated that the fact that full payment of the grant docs not occur until all paperwork is finalised is for most local authorities an incentive to comply with accounting and monitoring requirements

Administration of Project-related Assistance

819 A considerable amount of energy is invested by the State in securing allocations from the EU Where the assistance is administered on a project basis it is particularly important to match that effort with administrative procedures which are adequate to

guarantee that drawdowns on foot of allocations are maximised Particular matters which need to be addressed include

Pre-1989 Pro1ects

bull closer liaison with spending agencies in order to draw down allocations efficiently

bull the risk of dysfunctional behaviour since organisations receiving funds by way of voted moneys have no compelling incentive to complete the paperwork which would allow Finance to claim EU funds due to the Exchequer

bull overall central control in the form of a separate claim control function to account for and effect reconciliations on an on-going basis

Appendices

Appendix A

European Funding

Features of EU Assistance

Partnership

Structural measures are intended to be planned and executed by the national authorities in close involvement with regional and local bodies The broad aim is that on the basis of the CSF all the panies concerned in this pannership develop programmes and projects which will conven the priorities identified in the framework into actions on the ground

Additionality

Structural Funds are designed to augment national spending and not replace it This additionality effect was calculated for the framework of programmes as a whole using 1988 figures indexed to current year prices The criterion is met where the spending on structural measures funded by Irish public authorities is at least maintained at the same level as in the base period There is a legal requirement to furnish an additionality return to the EU Commission on an annual basis This has been complied with for all years

Administration

Funding from EU sources is matched with national moneys and administered through

Operational Programmes

Each Operational Programme consisted of a set of measures implemented with the aid of one or more of the Structural Funds Operational Programmes were drawn up by the Government and agreed with the EU Commission to achieve the priorities identified in the CSF Seven such programmes drew funds from the ERDF

Comm1mity Initiatives

The eleven specific measures outlined beneath were introduced at the initiative of the EU and agreed with the Government These are referred to as Community Initiatives

LEADER This assists rural communities to implement multi-sectoral businesses in accordance with their own priorities

ENVJREG This is aimed mainly at eliminating untreated sewage discharges from coastal towns of fewer than 100000 inhabitants

TELEMATIQUE This is a continuation of the STAR Community Programme aimed at using advanced telecommunications infrastructure

REGEN This assisted the construction of the IrelandUK Gas interconnector

STRIDE This assists the development of research technology and innovation especially in natural resources sectors

PRISMA This assists development in four highly specialised fields - metrology third party testing EU public procurement markets and support for previously protected sectors

NOW This is a human resource initiative aimed at promoting equal opportunity for women

HORIZON This is a human resource initiative aimed at assisting the disabled and disadvantaged integrate into the labour market

EUROFORM This is a human resource m1t1auve assisting the development of new skills and opportuniues m the context of the completion of the internal market and technological change

RETEX This assists the diversification of economic activity in those regions which have a heavy reliance on the clothing and textiles sector

INTER REG This assists the development of border regions

Appendix A ---~

Community Programmes

Four Community Programmes drawing funds from the ERDF existed prior to the commencement of the CSF and were continued in the 1989-1993 period These programmes were

STAR This assisted infrastructural investment in telecommunications co-funded by Telecom Eireann

VA LOREN This assisted the exploitation of indigenous energy potential

NON QUOTA BORDER AREAS This was largely concerned with tourism measures but also provided for operations relating to the supply of natural gas

TEXTILE AREAS This programme focused on environmental improvement and aid to small and medium enterprises

European Regional Development Fund

Regional development assistance provided from the European Regional Development Fund (ERDF) is intended to help redress the principal regional imbalances in the EU through participating in the development and structural adjustment of regions whose development is lagging behind and in the conversion of declining industrial regions

In this context the ERDF provides help to strengthen the economic potential of the regions support structural adjustment and growth and create permanent jobs In order to achieve these objectives it contributes to the financing of productive investment infrastructural investment and measures designed to develop the indigenous potential of the regions (their business environment and exploitation of local resources)

Appendix B

The examination was conducted by staff of the Office of the Comptroller and Auditor General with the assistance of consultants (Coopers amp Lybrand and Goodbody Economic Consultants)

The administration of programmes by departments was reviewed in the course of the examination

The departments reviewed were

bull the Department of Finance bull the Department of the Environment bull the Department of Tourism and Trade bull the Department of Enterprise and Employment bull the Department of Tran sport Energy and Communications bull the Department of the Marine

The fieldwork consisted of interviews of relevant personnel and examination of the departmental and agency records The examination also reviewed minutes of monitoring committee meetings annual reports progress reports mid-term reviews and evaluations of the programmes and individual measures

Appendix C

Transport Administration and Evaluation

Programme Administration

The Department of the Environment had responsibility for the co-ordination of the programme and direct responsibility for roads investment It liaised with other departments who monitored investment in airports seaports and railways

A monitoring committee was established to oversee the implementation of the programme Its responsibilities included reviewing progress made in implementing the programme and proposing and where appropriate deciding on any necessary adjustments

The Department of the Environment established a monitoring unit which assembled information on the implementation of the programme in physical and financial terms

Progress on non-roads measures was assembled from reports provided by the other departments and comprised mainly financial information on expenditure by measure andor project as well as descriptions of the status of individual projects

Evaluation

Technical Assistance

Included in thc programme was a technical assistance measure under which funds of pound6Sm were made available to meet the cost of external evaluation and other transport 1n1t1at1ves

The following work was completed using this allocation

bull a project selection tool was developed and implemented in respect of projects costing in excess of pound2Sm

bull development work was undertaken on a computerised national roads database (covering capacity physical conditions traffic and safety data)

bull a consultancy project was completed which reviewed and updated parameter values for the cost benefit analysis of transport projects

The Department ofTransport Energy and Communicatwns for airports railways and Rossare Port and the Department ofthe Marine for other ports

Regional Development Measures ~~~~~~~~~~~-

bull a review of vehicle ownership and traffic forecasts was completed

bull preliminary analysis of the macroeconomic effects of the programme using the ESRI (HERMES) macroeconomic model was carried out

A number of other studies were also financed from this allocation Among the most important were the Dublin Transportation Initiative the Access Transport Study (which examined the adequacy of Irelands transport infrastructure and services) the Dublin-Belfast Railway Study the Dublin Port Relocation Study and the Review of the Cork Land UseTransportation Study

Evaluation Approaches

The Crowley Report

Dr James Crowley was retained to recommend on procedures for project selection monitoring and evaluations He reported in December 1990

Recommendations of the Crowley Report

Crowley addressed evaluation in the context of the central objectives of the progranune

bull to reduce the transport cost differential for Irish exporters to mainland Europe and the UK as compared to the costs experienced by other member states

bull to improve market access through an efficient primary transport network

Cost Diferentials

The programme had estimated the transport costs for Irish exporters at over 9 per cent of export sales value and at approximately twice that incurred by other EU countries trading with each other It established a target of reducing this cost differential for Irish exporters by about a quarter by 1995

Crowley recommended that the impact of the programme be assessed on the basis of the transport costs of a shopping basket of export consignments monitored at periodic intervals as the programme progressed

His recommendation was that the 9 per cent benchmark be broken down into the main constituent commodities and destinations and that individual components should be monitored over the life of the prognmicronme

Appendix C

Market Access

Crowley considered that a primary indicator of progress against this objective was the time it takes for freight vehicles to travel on the transport network He recommended that benchmark transit times should be measured at the outset of the programme on the key national primary routes from designated cities to and through designated ports and airports and that achievement under the programme should be gauged by repeating these measurements periodically

Jennings Report

In March 1992 Jennings Consultancy reported on foot of an assignment to

bull assess the feasibility of developing a transport cost monitoring system which would monitor progress in reducing transport cost differentials as between Ireland and other EU member states

bull develop specified proposals for such a system

bull assess the monitoring system original y proposed

In regard to the evaluation of the impact of the programme on transport costs Jennings concluded

bull the impact of the programme on transport costs can be isolated by means of a modelling approach only

bull speed flow and operating costs are a necessary input to this process and such models can be calibrated by adapting American and British research results

bull while not all the cost impacts of the programme can be measured comprehensively two principal cost components - fuel and wages - are fully susceptible to measurement

Jennings recommended an approach to the monitoring of transport costs which was an index to track movements in transport prices over time While this cannot assess the impact of the programme it is an indicator of the trend in Irish export transport pnces

Regwnal Developmenc Measures

Follow-up Actions

Neither set of recommendations has yet been implemented However arising out of the work of Crowley and Jennings the Department of the Environment has sponsored the construction and validation of models to effect

bull export transport cost momtonng bull route transit time mon1tor1ng

An Bord T richtaa (ABT) is piloting the export transport cost monitoring system and a pilot model for route transit time monitoring has been developed by the Environmental Research Unit

Export Transport Cost Monitoring

ABTs latest report in May 1995 details movements in an index of the national average cost per tonne-kilometre from the base period the third quarter of 1993 to the third quarter of 1994 The results to date do not show a consistent movement in the index as illustrated by Table C2

Table C2 Index of national average cost per tonne-kilometre

Quarter

Third Quarter 1993

Fourth Quarter 1993

First Quarter 1994

Second Quarter 1994

Third Quarter 1994

National Average Cost Index

Source Transport Monitoring Reportmiddot An Bord Trachuila May 1995

As results from the initial period of operation have fluctuated it has been decided to continue the project for another 12 months under the new transport operational programme The Department of the Environment stated that at the end of this period there will be a fundamental review of the project

Route Transit Time Monitoring

An initial version of such a model has been developed and used to simulate the Dublin-Killamey route However the Department of the Environment advised that this version still requires fine tuning and they would be seeking technical assistance funding in the Operational Programme for Transport 1994-1999 to extend the project to enable its completion and the simulation of the full road network

Economic Modelling

Work is continuing in refining the ESRI modelling method and on collecting data with a view to improving the measurement of the economic effects of the investments as follows

bull A project is underway which will provide more accurate information on the direct and indirect induced employment and material demand impact of major road improvement schemes which account for a high proportion of total programme expenditure The results of this project will be used to adjust the model estimates of the immediate (demand-side) effects of the programme spending

bull The implementation of computer simulation in connection with road transit time monitoring will provide a better basis for estimating the impact of the programme on transport costs As data from these and other studies become available this will be used in future applications of the model

Appendix D

Science and Technology Administration and Evaluation

Administration

The Department of Enterprise and Employment had responsibility for science and technology (SampT) policy and for overseeing the programme Eolas (now part of Forbairt) was the main agency responsible for implementing the measures However aspects of certain measures were directly administered by the Department while Measure 6 (introduced in 1993) was administered until 1995 by a firm of management consultants

The measures were overseen and monitored by

bull a monitoring unit in Eolas (now part of Forfas) bull an evaluation unit in Eolas (now part of Forbairt) bull an evaluation unit in the Department of Enterprise and Employment (Industry

Evaluation Unit)

Monitoring Unit in Forfis

The unit was specifically set up in 1991 to monitor schemes administered by Eolas which were eligible for ERDF funding It produced reports on physical outputs spending and progress on such schemes

Evaluation Unit in Forbairt

This unit has the following functions

bull collection of statistical data bull commissioning external evaluations bull conducting evaluations itself

It is responsible for evaluation of all former Eolas schemes including ERDF funded measures

Industry Evaluation Unit

This unit was established late in the life of the programme (1993) It undertakes analysis of particular measures under the programme assesses the effectiveness and efficiency of these interventions and recommends changes in approach as appropriate

Regional Development Measum

Control and Monitoring

In general lhe control and monitoring of the measures worked well The financial procedures as operated by the administrators of the programme were found to be in order

Evaluation

Evaluation of the SampT Measures

There were two evaluations relating to the entire range of SampT measures

Tsipouri Report

The key findings of the Tsipouri Report in 1993 which was prepared for the EU Commission were

bull While Ireland continued to be a less favoured region within the EU its SampT initiatives have been well ahead of other such regions in terms of timing coherence and variety

bull Ireland has been successful in offering technology services to industry

bull The major challenge in the future will be

to balance the need for research infrastructure including buildings and equipment with lhe need to increase capacity utilisation

to transform the exibull~ing pool of knowledge into innovative performance and thereby increase the competitiveness of lhe productive sector

Assessment of the Impact of the Community Support Framework on Research and Technological Development in Ireland Tsipo1m Reportmiddot 1993

Deloitte and Touche

__ __ fppend1x D

bull SampT was assisted from a variety of sources including other measures under the programme and the STRIDE Community Initiative This diversity which followed historical rather than rational lines inhibited a global approach to SampT development

bull Though all the schemes were aimed at directly or indirectly benefiting industry the supply sector (Public Service Universities etc) remained the main beneficiaries There is a need to strengthen the demand side (industry) in prac-cical terms

External Evaluation

The key findings of the external evaluator were

bull the investment in SampT is justifiable and necessary if the competitive performance of indigenous industry in international markets is to be enhanced

bull there was no evidence to suggest that Irish investment in SampT is out of line with peer countries If anything it is below that of Irelands European competitors

Background to Evaluation

Technology is seen as a crucial element in explaining inter-country differences in economic growth having the capacity to raise permanently the growth path of individual economies

There is an increasing body of empirical evidence which suggests that RampD has a strong positive impact on productivity and growth Studies suggest that this is especially true of privately funded or commercial RampD

There has been in recent times a recognition that

bull technology is embedded in organisational structures making its transfer difficult and costly

bull technological knowledge is cumulative in nature with each idea building on the last

Technology and International Differences in Growth Rates Jan Fagerberg Journal of Economic literature Vol xxxii No J 1994

As reported in Endogenous Innovation and the Theory ofGrowth The journal ofEconom1e Perspectives Vol 8 No I 1994

________R_e~g~io_n_a_l_D_evelopment Measures

However technological change also gives rise to spillovers in that other firms may benefit from RampD knowledge gained by an individual firm These also enhance the productivity impact of technological change

Accordingly the rationale for government intervention in the area of SampT is largely based on the following premises

bull the lack of resources and capacity to develop or acquire technological know-how on the part of smaller firms

bull the evidence of under-investment in technology in the economy as a whole

Evaluation Approach

In practice it is difficult to capture the full impact of SampT investment due to

bull the progressive and cumulative nature of such impacts

bull the tendency for its impact to spill over from target firms and sectors to the wider economy

bull its qualitative benefits not being susceptible to measurement

This does not mean of course that evaluation is futile The application of technology by targeted firms and sectors is a necessary condition for the existence of spillovers and the extent of that application can be measured Also some spillover effects can be measured by widening the focus of evaluation from the firm to the sector as a whole

Consideration of the spillover nature of the benefits from SampT suggests that a comprehensive evaluation of the impact of the measures would not be confined solely to firms which receive support That is there may be substantial benefits not captured at the measure level alone

Fundamental considerations in gauging the effectiveness of the spending are

bull the rate of progress in the application of technology in sectors which have been in receipt of substantial support under the measures

bull the impact of the measures on RampD activity in the third level education sector

bull the identification of the size distribution of firms in receipt of support to ensure that those most in need of assistance are being reached

---~pp_end~D__________________

Application of Technology

While SampT spending is to some degree a long term investment providing for the development of future skills and technologies it is nonetheless essential that the rate of progress in the application of technology in sectors which have been in receipt of substantial suppon under the measures be assessed This could be accomplished by analysing the results from a sample of firms over time using a baseline and an ex-post sample survey of firms which would establish changes in

bull their spend on RampD bull firm profitability and employment bull the level of awareness and knowledge of management in relation to technological

matters bull the level of in-firm technical skilling bull the extent to which the firm falls shon of best practice in the application of

technology

While such an assessment could not be carried out on a comprehensive basis its implementation in a small number of key areas would provide valuable insights into the rate of progress towards the objectives of the measures

Contrib11tion of the Third Level Ed11cation Sector to Applied Research

A major objective of the measures was to ensure that the third level education sector contributed to the development of the technological capacity of firms through an increased emphasis on applied research and technology transfer

There is a clear need therefore to assess the overall impact of the measures on applied RampD activity by third level institutions The Depanment of Enterprise and Employment has assured us that a range of detailed performance indicators are being finalised including details of industry beneficiaries by size and sector

Targeting the Assistance

It is apparent that small and medium firms face the greatest problems in acquiring and applying technological know-how

Evaluation should therefore extend to itlentification of the size distribution of firms in receipt of suppon

__________R_egional DeUelopment Meas_u_re_s_____________

Review of Individual Measures

Measure I - Programmes in Advanced Technology (PATs)

Scope of the Measure

This measure was aimed at developing the application of new technologies in cenain selected niches where it was considered feasible for Irish industry to be internationally competitive After the development phase the aim is to transfer the technologies to industry through the provision of contract research and services At the end of 1993 the eight PA Ts in existence were as follows

PAT Purpose

AMT Ireland Advanced manufacturing technology

Bioresearch Ireland Biotechnology research

Materials Ireland Research in the areas of metal processing ceramics technology and polymers

Optronics Ireland Integrated semi-conductor optoelectronics technology

Power Electronics Research and technological development in power electronics

Software Software engineering research

Teltec Ireland Research into advanced telecommunications technologies

NMRC Research in the microelectronics area

The eight PA Ts are required to operate under a Depanment of Enterprise and Employment policy statement The policy statement sets out the following criteria for determining whether the PAT is achieving its objective

bull After five years the level of Exchequer funding for the PAT should have fallen to a maximum of 50 per cent of total expenditure After seven years this should have reduced further to 20 per cent of total expenditure Exchequer funds should be increasingly related to specific strategic activities

National Microelectronic Research Centremiddot an independent unit within UCC

bull The level of income from industry should be at least 50 per cent of total income (including Exchequer funding) at the end of the seven years

bull After five years of operation there should be a clear indication of support from industry in Ireland At least 50 per cent of the income from industry at this stage should be from companies located in Ireland

bull The level of EU funding should not exceed 30 per cent of total income (including Exchequer funding) at the end of the seven years

None of the PA Ts appear set to meet these targets

Evaluation of the Meamre

The evaluation by Tsipouri concluded that

bull while there was substantial merit in the basic idea of the PA Ts more effort was needed to improve their implementation

bull there was more good will than achievement by the PA Ts in the area of academic shyindustrial technology transfer

bull PA Ts attempted to serve opposing interests but were in fact more driven by the supply side (universities) than led by industrial demand

The external evaluator noted that the investment in PA Ts constituted about 33 per cent of the total SampT spend They noted hat there is significant risk involved in the investment which is compounded by the fact that its impact will not be measurable for some time to come

AMT Ireland

Evaluation by Technopolis in 1992 and 1993 found that

bull marketing and strategy functions were below the required quality to take advantage of the needs of industry in Ireland

bull its break-even goal may have to be abandoned and an explicit decision taken about what parts of the activity should be fully funded by the State what should be subsidised and what should be self-funding

bull AMT should be reorganised in the form of a limited company operating as a subsidiary of Forbairt

Regional Development Meas1ms ~~~~~~~~~~~~~-

bull AMTs role in the overall system of State supports to manufacturing industry needed to be resolved

Bioresearch Ireland

An evaluation by Quotec in 1992 concluded

bull a strategic research fund should be set up to assist the long-term competitiveness of Irish companies which need the benefits of relevant research on biotechnology but are unable or unwilling to fund such research

bull the Biorescarch PAT should be restructured as a limited company with a dual remit to manage the strategic research fund and to conduct contract research and provide other biotechnology services to industry

Materials Ireland

An evaluation by Tcchnopolis and Quotec in 1994 concluded

bull Materials problems arc hard to identify and classify The evaluators were not aware of any programme which had successfully offered a materials RampD service while covering the bulk of its costs

bull The programme was too big too complex and in parts too future-orientated to do its industrial development job as well as was desirable It should be smaller and more closely focused on the needs of Irish-based industry

Optronics Ireland

An evaluation by CIRCA Group in 1993 concluded

bull Optronics would be unable to respond to the PATs policy without major reorganisation allied to refocusing of its programmes Optronics should be restructured on a more commercial and autonomous basis The refocused progranune would involve the discontinuation of a number of major projects and the rationalisation of others

bull It had largely failed to address the opportunities for application of the technology in mainstream manufacturing

bull Optronics response to the needs of Irish companies was very low

_____A~ppendix___

Software

The Industry Evaluation Unit in a 1995 review found that

bull The centres operated under a confusing and conflicting set of guidelines and objectives This had reduced their technical impact and gave rise to conflict with host universities in some instances

bull The results from the small number of technical projects completed for clients indicated that they were relevant and could have a direct positive impact on companies assisted

bull All of the centres played a vital role as an information resource for the industry

bull Financial self-sufficiency averaged 30 (target walt 100)

bull There appeared to be some overlap with other PATs especially the telecommunications PAT T eltec

Other PA Ts

A detailed evaluation of the NMRC PAT is currently ongoing There has been no specific evaluation yet of the Power Electronics and Teltec Ireland PA Ts

Measure 2 - Higher EducationIndustry Linkages and Innovation

This measure was designed to encourage third level colleges to undcnake product and process research projects on behalf of industry with a view to developing in the college a good practical understanding of the needs of industry and ultimately reflecting this understanding in college courses The measure also aimed to increase the level of technology skills in companies by supponing the placement of high quality science and technology graduates

---middotmiddot---- shy

Regional Development MeaJures ------middot---middotshy

The measure was pursued through four specific actions

bull The Higher EducationIndustry Co-operation Scheme HEIC) which aimed to encourage linkages between third level colleges and industry through support for collaborative research and development projects

bull The Graduate Placement Programme which encouraged selected companies to employ technically qualified graduates Placement was for one year with Eolas covering 50 per cent of the salary costs up to a maximum of pound5000

bull Scholarships in applied research to enable graduates in engineering and science to do applied research leading to a masters degree The scholarships were of two years duration with pound3500 payable at the end of each year

bull The Industrial Liaison Officers Programme which was designed to place a fullshytime industrial liaison officer in each college (ERDF funding for industrial liaison officers was not provided in 1993)

Evaliltation of the Measure

Tsipouri found that these initiatives like the PA Ts were driven by the supply sector (universities) rather than being demand sector (industry) led and the achievement in the area of academic-industrial transfer seemed less than that envisaged

The external evaluator concluded that the measure was performing well but

bull the profile of participants in the HEIC scheme should be broadened and reshybalanced in favour of smaller firms

bull other components of the measure should be expanded

Higher EducationIndustry Co-operation Scheme

An evaluation by Fitzpatrick Associates in 1993 concluded that while the overall assessment of the scheme was positive

bull there was a need to redefine and refocus its activities in recognition of a changing environment including awareness of the dangers of over-emphasis on the supply side

bull in the short-term the scheme should have a sharper focus on promoting coshyoperation between new partners and either partner should be eligible to formally apply to the scheme

-----------Appendix D

bull in the medium-term the various schemes for assistance to industrial orientated RampD should be brought closer together in a more co-ordinated framework

Graduate Placement and Technology Management Programme

An evaluation by CIRCA in 1993 concluded that there were

bull clear positive industrial impacts to the panicipating companies from this measure including increased sales development of newimproved productsprocesses new systems new markets and cost reductions

bull positive employment impacts including an increase in total employment in participating companies through placement retention and additional or spin off jobs

Other Programmes

No detailed evaluation was carried out on the Scholarship Programme and the Industrial Liaison Officers Programme

Measure 3 - Technology Services to Industry - Services

Scope of the Meas11re

These services were aimed at raising the quality and competitiveness of Irish industry through the supply of a broad range of engineering advisory and information services This was to be achieved through four main programmes

bull Technology Audits bull Engineering Advisory Services bull Engineering Services bull Information Services

Eva11ation of the Meas11re

Tsipouri found that the measure could play a crucial role in the survival of SMEs and the provision of personnel sensitive to technological change

The external evaluator found that the measure was performing well but that

bull marketing and management of the services could be improved bull technology audits needed to maintain a focus on technology and avoid a drift into

other areas

Regwnal Developme_nt Mea_s_u_re_s___________

Technology A ridm

Technology audits arc conducted in two phases The first phase is general in scope Evaluation of this phase by Fitzpatrick Associates (1993) found that the companies participating in the programme generally perceived it to be a useful and beneficial exercise

Evaluation of Phase II audits by the former Eolas Evaluation Unit found that it was an important and appropriate mechanism for assisting the development of small firms

Other Programmes

There were no specific evaluations of the Engineering Advisory Services Engineering Services and Information Services programmes

Measure 4 - Technology Services to Industry - Infrastructure

Scope ofthe Measure

The objective of this measure was to strengthen test facilities and laboratories in Eolas in support of industry by improving facilities at the National Metrology Laboratory (including the building of a new laboratory) and the National Electronics Test Centre as well as improving material timber and environmental testing facilities

Evalllation of the Meamre

The external evaluator found that this was a necessary investment in capital equipment which had enabled Eolas to supply lasting services to industry However they expressed concern at the lack of detailed evaluation of this measure

Measure 5 - Regional Infrastructure

The focus of this measure was to address the technological needs of each region with an emphasis on developing a supportive environment for RampD activities rather than supporting individual firms This was carried out by developing the campus infrastructure of the various universities and RTCs and through a number of projects

See paragraph 47 ofthe Report ofthe Comptroller and Auditor General on the Appropriation Accounts 1994 which deals with financial and regularity issues arising out of upgrading metrology seroiccs

___Append_u_D__

which took advantage of particular regional strengths or opportunities The measure comprised seven individual programmes which were

bull South East Region Technology Pilot Programme SERTEC) bull Technology Transfer Programme bull Polymer Development Centre bull RTC Campus Infrastructure Centres bull University Campus Infrastructure Programme bull National Microelectronics Applications Centre bull Peat Research Centre

The first four programmes were administered by Eolas and the other three by the Department of Enterprise and Employment

Evaluation of the Measure

Tsipouri found that

bull this measure had been treated as a catch all category with a variety of useful individual initiatives but without any clear overall coherence

bull with the exception of SER TEC and the Campus Infrastructure programmes the regional dimension of the measure was not clearly evident

The external evaluator found that there was a need to balance the investment in technology acquisition with a significant increase in support for technology transfer

SERTEC

An evaluation by the Eolas Evaluation Unit (1992) found that SERTEC had played a useful role in enabling new initiatives to be tried out on a pilot basis It was however recommended that SERTEC be reduced in scale The Department of Enterprise and Employment has informed us that SERTEC has been discontinued but that parts of it have been absorbed into other measures

Peat Research Centre

An evaluation by the Eolas Evaluation Unit (1993) found that the centre had in practice become an integral part of Bord na Mona and as such it should no longer be eligible for direct funding

Ocher Evaluations

A detailed evaluation of the Polymer Development Centre has recently been finalised Evaluations of the Technology Transfer and the Campus Infrastructure programmes have been scheduled for late 1995 Following these the National Microelectronics Applications Centre will be the only programme under this measure which has not had a detailed evaluation The Department of Enterprise and Employment has informed us that its operation and future are being examined at present

Measure 6 - Industry Research and Development Initiative

This additional measure was introduced in 1993 Its purpose was to assist companies carrying out large RampD projects by way of 50 per cent grants

The objective of Measure 6 was to enhance both the number and size of product and process development projects undertaken by industry significant and vital to establishing or maintaining a advantage

The projects had to be companys competitive

Evaluation ofthe Measure

The Tsipouri Report welcomed the initiative It was concluded that it was too early (1993) to do an impact assessment or evaluation of Measure 6

The external evaluator stated that the scheme had been a success to date with over pound23m ERDF aid allocated to separate industry led RampD projects in 66 companies

Appendix E

Tourism Administration and Evaluation

Overall Responsibility

The Department of Tourism and Trade was responsible for tourism policy and overseeing the programme It chaired and provided the secretariat for the Tourism Monitoring Committee which monitored progress under the programme

Bord Fiilte and Shannon Development were involved in the administration of all the measures However public sector measures 1 and 4 were administered mainly by the Office of Public Works (OPW)

Administration Approach

The main features of the approach adopted by the Department of Tourism and Trade were

bull monitoring performance on an ongoing basis using the data collection and analysis services of Bord Failte

bull the ongoing review of outtum and the reorientation of the programme as appropriate based on the results of monitoring and other feedback

Departmental Resources

At the inception of the programme there were very few civil servants with tourism responsibilities However following the establishment of the Department of Tourism and Trade m 1993 the number of civil servants with general tourism responsibilities increased from 12 to 27 by 1995

The number of Depanmental staff devoted to the programme appears to have been insufficient to administer a programme of this size and complexity Currently only four staff are responsible for administration of the Tourism Operational Programme 1994-1999

Visitor Centres

Under the progranune OPW had responsibility for the development of visitor centres at three locations the Burren Luggala and the Boyne Valley These centres were the subject of planning and environmental difficulties which have been reported to Diil Eireann in the Comptroller and Auditor Generals Report on the Appropriation Accounts for the year ended 31December1992

Co-ordination of Activity

A co-ordination committee was established It was chaired by the Department of Tourism and Trade and included representatives from OPW Bord Hilte and Shannon Development The tasks of the committee were

bull to ensure that assistance was confined to eligible activities bull to provide maximum integration of the measures bull to ensure standard application of assessment procedures for projects

The three main spending agencies - OPW Bord Hilte and Shannon Development shysubmitted monthly reports of expenditure to the Department of Tourism and Trade These reports were discussed every month at meetings of the co-ordination committee and they enabled the Department of Tourism and Trade and the Department of Finance to initiate appropriate drawdowns of ERDF funds

The Department of Tourism and Trade delegated the function of collecting data on progress to Bord Hilte These data which were collected monthly formed the basis of periodic reports on the programme

Monitoring of Progress

Progress reports were produced by the Department of Tourism and Trade based on information collated by Bord Fiilte which liaised with other implementing agencies These reports were considered by the monitoring committee

The monitoring committee took initiatives to adapt the programme to changing circumstances For example

bull the eligibility criteria for certain private sector investments (including golf) were eased

Subseq11ently limitations were set on the n11mber ofgolfcourse facilities to be aided under the program1ne beca14se it was considered that capacity was adequate

Appendix E

bull a special marketing initiative was launched in 1991 to offset the adverse impact of the Gulf War

Some difficulties were apparent in the system of monitoring and reporting

bull While early in the life of the programme progress reports were produced every six months subsequently production of these reports lapsed These reports included details on the performance of the tourism industry financial and physical indicators for each measure together with commentary and regional information At August 1995 the latest available progress report covered the period to December 1992

bull Financial information was delayed also In October 1993 financial outturns were circulated to the members of the monitoring committee covering the period up to June 1993 At August 1995 the final financial outturn for the programme had not been circulated to members However financial figures were submined regularly to the monitoring comminee for the Community Support Framework The Department of Tourism and Trade expects that the financial information to be included in the final progress report will not differ from these to any great extent

bull Associated with the delay in finalising progress reports the drawdown of ERDF funds was also delayed At August 1995 some poundl2m had not yet been claimed from the EU

bull The monitoring comminee was due to meet every six months The last meeting held in the life of the programme was in April 1993 At that meeting it was decided that there was no need to meet until April 1994 as almost all the ERDF funds had been commined However this April 1994 meeting did not take place and no further meetings of the monitoring comminee had been held up to August 1995

The Department of Tourism and Trade has explained that the meeting in 1994 was deferred with the agreement of the EU Commission and this deferment was necessary to ensure that preparatory work for the subsequent operational programme was done

The Department stated that much of the grants under the new operational programme are in respect of private sector projects therefore it was essential in its view that the new investment programme commence on time and be administered

smoothly

The pressure on staff resources may have been a contributory factor m the

deficiencies noted in programme monitoring

pound3

Financial Control

Payment approval procedures in Bord Hilte were criticised in an independent study of the private sector marketing measure With regard to the payment of marketing grants to approved applicants the consultant found that

The basis of evidence of actual payment of costs of marketing activity by recipienLS was weak We could find no evidence that the invoices on file were actually paid It seems that this is an assumption made by the current design and interpretation of the administrative system This approach has certain fundamental weaknesses 2

Similar findings were made in an internal audit carried out within Bord Failte

Grant paymenLS were made in respect of eight cases in the audit sample In four of these cases total project expenditure was vouched or substantially so in one case 125 per cent was vouched and in three cases no vouchers were on file

The Department of Tourism and Trade has indicated that these control procedures have been improved

Payment Delays

There were many complaints regarding delays in paying grants in respect of private sector developments and some public sector projects One of the main reasons for delay was the mechanism used to transfer the EU funds component In such cases the ERDF assistance was paid directly into bank accounts held by Bord Failte and Shannon Development Consequently the payment of grant assistance depended on the timing of the receipt of such funds The Department of Tourism and Trade introduced special arrangemenLS to ease the cash flow difficulties of developers Such difficulties did not occur in the case of those public sector projecLS where finance was voted annually by Dail Eireann

The Operational Programme for Tourism 1989middot1993 The Marketing Measure Review and Recommendations (for the Department ofTouriJm and Trade) Tourism and LeiJure Partnm 1993

Administration Audit ERDF grants Internal Audit Bord Failte 1993

______A~P~p_endO -_______

Post Payment Review

The post implementation monitoring of projects by Bord Failte was not adequate Such follow-up is important in order to

bull ensure compliance with the terms of the scheme for example to ensure that a golf course remains available to tourists

bull gauge the extent to which expected benefits were realised in terms of results such as the number of overseas customers the number of off-peak tourists profitability and employment

Follow-up activity was informal The regional tourism organisations carried out some informal post-payment monitoring and Bord Failte got involved on an exception basis The Department of Tourism and Trade has indicated that while some improvements in post implementation monitoring have occurred further improvements would require additional resources which are unavailable

Shannon Development has informed us that it requested accounts data for all assisted projects after they had traded for a period In addition it carried out surveys of employment levels achieved for grant-aided projects

Evaluation

No overall evaluation of the effectiveness of the programme was completed Only one measure was the subject of a formal evaluation - Private Sector Marketing Support

Approaches to Assessing Effectiveness

There are two broad approaches which could be used to assess the extent to which tourism development may be attributed to State interventions

bull a bottom-up approach which assesses the impact of assistance to individual projects and then establishes overall impacts by aggregation

bull a top-down approach under which the overall impact of the investment on the total tourism market or the major market segments is assessed

Both approaches have a contribution to make to overall impact assessment

Regwnal Development Measures

Assessing the Impact of Assistance to Projects

For investment in product development to have an impact on visitor numbers the individual projects themselves must be successful The economic impact of projects may be measured by their employment effects and revenue earned

In 1992 Bord Fiilte undertook a postal survey to measure operational employment arising from tourism investment projects A response rate of approximately 33 per cent was achieved While this response rate is not unusually low for postal surveys Bord F ailte regarded it as disappointing in view of the fact that many of those surveyed would have been in receipt of grant-aid In the final analysis Bord Fiilte felt that they could not rely on the survey results for estimation of employment impacts because of its lack of representativeness

Bord Hilte subsequently commissioned consultants to advise on how the employment impacts of grant-aided projects could be accurately measured The consultants recommended that

bull impact evaluation procedures be built into the process of project sanctioning and monitoring

bull the evaluation of employment effects in respect of individual projects should not take place until sufficient time had elapsed to allow employment effects to show

through

bull an interview survey approach would be appropriate in order to ensure that employment effects are fully and accurately measured

A particularly important issue that arises is the extent to which private sector projects assisted under the progranune would have gone ahead in any event No anempt was made to gauge this deadweight effect for the programme

However an independent survey of over 130 tourism enterprises which had received grant aid in the period 1988-1993 (including Business Expansion Scheme and International Fund for Ireland projects) was carried out by the University of Ulster 5

This was broadly along the lines recommended by the consultants but was a postal rather than an interview survey

Measuring the Employment Impact in Tourism Projects Goodbody Economic Consultants 1994

A Regional Analysis of To11Yism Growth in Ireland K Hannigan Regional Stud~s 282) 1994

----Appendix pound_ _

Respondents were asked to compare the number of jobs actually created to the number forecast in the plan submitted when applying for the grant Respondents were also asked whether the project would have gone ahead in the absence of a grant (deadweight) and the number of jobs which would have been created if no grants had been obtained

The findings indicated that the deadweight effect varied depending on the size of firm Some 80 per cent of medium-sized firms defined as those with 6-20 employees (in terms of full-time equivalents) indicated that investment would not have gone ahead without the grant-aid while 30 per cent of smaller firms and 38 per cent of larger firms thought the grant-aid was crucial With regard to employment creation the study indicated that the proportion of jobs actually achieved amounted to 88 per cent of those forecast However given the dead weight factor many of these jobs would have been created in any event The study estimated that 50 per cent of the jobs claimed would have been created without assistance

In assessing the impact of projects the degree of displacement involved is a consideration The product development strategy of the programme which was to focus on tourism facilities which were acknowledged to be lacking could help to minimise this effect In addition the Department of Tourism and Trade is satisfied that every effort is made to eliminate possible displacement effects at project approval stage However the success of such efforts needs to be assessed and should be built into any further evaluation of tourism interventions by the State

Perception of the Customer

The quality and attractiveness of the tourism product is influenced by more than direct tourism spending In particular general Government policies on prices and infrastructure have substantial effects

The perception of visitors is a key factor Visitor perceptions on a wide range of quality factors were monitored every five years on behalf of Bord FUlte Under the Operational Programme for Tourism 1994-1999 quality indicators are being refined and it is intended to carry out visitor attitude surveys more frequently

Of relevance also in assuring the quality of the tourism product would be the views of tourism professionals (for example tour operators and carriers) who had a

Displacement refers co the situation where a newfacility rnerely diverts tourist expendil1re

for example from one heritage centre to another

Weve been to Ireland A report on the 1988 Postmiddot Visit Survey Bord Failte 1989 and Visitor Attuutks Survey Bord Fa1te 1993

___________R~eg~ioi Development Meas14_re_s____________

knowledge of Ireland and operated in the target tourist markets In addition the views of those who do not operate in the Irish tourist market could also be imponant

Establishing Determinants of Tourist Decisions

Another approach to effective management and targeting of tourism investment involves establishing the causes of tourist flows The construction of econometric models of tourism demand holds out some prospect of success in this area

Such models are constructed on the basis of a range of factors which are thought to influence the tourists decision to undenake a foreign trip and the subsequent choice of destination These include

bull per capita income levels in the origin country bull the price competitiveness of the destination country relative to others bull prevailing exchange rates bull access transport costs bull marketing spend of destination country

At least three such studies were undenaken some time ago in respect of inward tourist flows to Ireland and a model has been developed recently in the University of Limerick

The use of such modelling could help establish the relative impact of factors such as price competitiveness and access transpon com on tourist numbers The precision with which this can be done is obviously dependent on the degree of success of the process At the very least however the modelling process could substantially expand our knowledge of the underlying causes of changes in tourist numbers Bord Fiilte agrees that such a model is required and have recent y informed us that it is intended to construct one

Review of Tourism Measures

Targets and outturns referred to in considering the individual measures below are general in nature and relate to tourist categories rather than specific measures They are influenced therefore by more than the measure under consideration and are accordingly indicative of general achievement in the tourism segment Consequently the outturn indicated should not be considered attributable to the measure alone

pound8

Appendix_pound

Public Sector Measures

Measure 1 Inland Waterways

The objective of this measure was to facilitate development of cruising holidays on inland waterways It was intended that the number of overseas tourists availing of cruising holidays would double from 16000 in 1988 to 32000 by 1992 pound259m was spent on the development and reopening of the Shannon-Erne canal and on improvements to other canals

It has been estimated that the number of specialist overseas visitors availing of cruising holidays actually increased to 19000 by 1993 Specialist means that for these visitors cruising was an important reason for choosing Ireland as a holiday destination

Measure 2 Outdoor Specialist Sports Facilities

The objective of the pound2 lm spent on this measure was to assist the development of certain special interest activity holidays in the areas of angling and water field and adventure sports It was intended that the number of specialist overseas tourists who came to Ireland for angling would increase from 52000 in 1988 to 110000 by 1993

Surprisingly there were no targets set for physical outputs However achievement was monitored The main work undertaken in the angling area was the provision of 739 signposts improving 213 access points and erecting 643 fishing stands

It has been estimated that the number of overseas specialist anglers increased to 81000 in 1993

It has been estimated by Bord Failte that the number of overseas holidaymakers who engaged in some angling increased from 108000 in 1988 to 180000 in 1993

Measure 3 Walking Cycling Touring and Equestrian

The objective of this measure was to facilitate the spread of tourists to all regions through the provision of better information and touring facilities for visitors

pound44m was spent on improving 29 tourist centres 3 signpostings to facilitate cycling improvement of 1500 kms of walking routes and providing a new equestrian trail These numbers were well short of target

It has been estimated by Bord Fiilte that the number of specialist overseas holidaymakers who engaged in walking cycling and equestrian activities increased as follows

TableE1 Growth in certain specialist tourist numbers

1988 Target 1993 Outtum 1993

Walking 10000 35000 53000 Cycling 14000 40000 35000 Equestrian 12000 28000 18000

Meast1re 4 Culture and Heritage

The objectives of this measure were to provide a small number of major cultural magnets and a range of other interesting cultural experiences which would appeal to the general tourist A countrywide genealogy network was to be provided also

pound75m was spent on the development of historical centres other visitor and interpretative facilities theme towns national parks literary museums and a genealogy network

The expenditure assisted 16 theme town projects 73 historical and cultural projects including interpretative projects 7 national parks 7 wildlife reserves and linked 13 local genealogy centres through a network

In the course of the programme surveys of tourist attractions were carried out to

ascertain visitor numbers However coverage of these surveys was incomplete and assisted facilities were not identified

Measure 5 Leis11re and Health

The objective of the measure was to provide a range of all-weather facilities which would help to extend the tourist season in key locations and allow Ireland tap into the growing activity and health conscious market pound117m was spent in assisting five prOJeCtS

Visit to Tourist Artractions 1993 Bord Failte

Appendix E

Measure 6 Caravan Parks

The objective of the measure was to improve conditions for motoring tourists with caravans by providing new caravan parks at cenain strategic locations in regions that were deficient in this respect

There was no recorded activity under the measure It had been a priority to develop caravan facilities in the Dublin area but this did not proceed in the lifetime of the programme due to planning difficulties

Measure 7 Coastal Marinas

pound66m was applied under this measure The main project supponed was the Kilrush Creek marina (see paragraph 46 of the Repon of the Comptroller and Auditor General on the Appropriation Accounts 1991 Other smaller investments in facilities for pleasure boats were supponed also

Measure 8 Marketing

This measure was introduced with the agreement of the monitoring committee in October 1992 From the repon of the monitoring committee meeting and associated documentation it would appear that the objective of the meSure was to combat the effects of seasonality through a targeted and focused campaign in 1993 concentrating on the UK France Germany and Nonh America Expenditure amounted to pound24m

Private Sector Measures

Measure 1 Specific Interest - Active

The objective of the measure was to assist the development of special interest activity holidays in the areas of sailing cruising angling golfing and equestrian together with field and adventure holidays

Public expenditure of pound17m was applied to assist in the provision of cruising fleet improved moorings at 11 centres angling improvements at 11 locations 23 non-club golf courses 19 equestrian facilities and 21 sponing facilities

Regional Development M_~a_ur_e_s__ middot------- shy

The outturn in specialist visitor numbers was estimated as follows

Table E2 Specialist visitor target and outturn

1988 1993 1993 Level Target Outturn

Sailing 2000 8000 9000

Cruising 16000 32000 19000

Angling 52000 110000 81000

Golf 14000 60000 38000

Equestrian 12000 28000 18000

In 1991 a consultants report proposed that criteria for some of these activities should

be widened as spending was lagging at that point Accordingly the monitoring committee agreed that the following would be eligible

bull development of sea angling bases centres

bull branded golf course development belonging to golf clubs but marketed by Bord Fiilte) subject to safeguards that the course would be available to tourists and not saturated by local membership

bull equestrian centres with upwards of 20 mounts (instead of 30)

MeaS11re 2 Specific Interest - Passive

The objective of the measure was to help put in place facilities which would enable promoters of language and traditional craft learning holidays to exploit identified market potential in Europe and the Middle East

pound07m was applied to the supported activities including the development of 8 language and craft schools and the enhancement of facilities in 5 existing schools

The number of visitors had been targeted to increase substantially from 50000 in 1988 to 130000 by 1993 The outturn in 1993 was below target at 82000

Report for European Commission Advice on a m1J1ifund lmegrated Operauonal Programme concemmg Tourism (Ireland) lndecon Consultants 1991

pound12

------------------

Appendix E -----middotmiddotmiddotmiddot--shy

Data was not collected however regarding the extent to which assisted centres contributed to this growth

Measure J Cult11re and Heritage

The objective of the measure was to provide a small number of major cultural magnets and a range of other interesting cultural experiences which would appeal to the general tourist

Public expenditure of pound8m was applied to assist development of 4 theme towns 2 theme parks and 22 day visitor attractions including historic houses castles and interpretative centres

The success of the assisted centres in attracting overseas visitors was not monitored

Meamre 4 Leisure and Health

The objective of the measure was to assist the development of a range of top quality all-weather facilities which would extend the tourigtt season increase hotel occupancy and afford Ireland access to the growing health and leisure market in Europe

Public expenditure of pound69m was concentrated on 38 hotels offering leisure facilities and 3 new standalone facilities

In 1991 a consultants report recommended that the accommodation limit on eligibility for assistance for leisure facilities in hotels be reduced from 45 to 35 bedrooms and this change was approved by the monitoring committee

The extent to which overseas visitors availed of the facilities provided under the measure was not monitored

Measure 5 Conferences

The objective of the measure was to develop international standard conference facilities of varying sizes at strategic locations It was intended to increase the number of visitors coming to Ireland for conferences by 85 per cent to 120000 by the end of 1993

IO Report for European Comm1mon AdvKe on a n1111ifund lnugrated Operatwna Programme concerning Touri5m (Ireland) lndecon Consultants 199

Public expenditure ofpound52m was made available to assist 12 new facilities and improve 8 others The visitor number outturn for 1993 has been estimated by Bord Failte at 85000

Measure 6 Marketing Support

The objective of the measure was to increase private sector panicipation in market research cooperative marketing with Bord Failte and development of new markets

The pound16Sm of public funds applied under the measure were targeted mainly at new tourist operators and new products firms selling Irish holiday packages and carriers In the wake of the Gulf War a provision of pound12Sm was approved by the monitonng committee to counter an expected downturn in tourism

A specific evaluation was carried out on the measure In general it concluded that the measure was a significant contributing factor in the success of Irelands overall tourism performance The consultants however questioned the focus of the measure (see paragraph 420)

1be Operational Programme for To1msm 1989middot1993 The Marketing Measuremiddot Review and Recommendations Tourism and leisHre Partners 1994

pound14

Appendix F

Small and Medium Industry Administration and Evaluation

Administration

The Department of Enterprise and Employment which had responsibility for industrial policy was responsible for the programme It chaired and provided the secretariat for an industry monitoring committee which monitored progress under the programme and could agree to certain changes being introduced into the programme

The main agencies responsible for implementing these measures were the IDA (now IDA Ireland and Forbairt) and Shannon Development

EU Structural Funds Co-ordination Unit

This unit established within the Department of Enterprise and Employment was responsible for overseeing implementation and providing information to the Industry Monitoring Committee as well as supplying financial information to the Department of Finance to enable EU funds to be drawn down

An Industry Evaluation Unit was established in 1993 It could not however be considered a key evaluation instrument in the context of the programme which ended that year It will contribute to future evaluation under its remit to analyse particular measures assess the effectiveness and efficiency of such interventions and recommend changes in approach

Departments Industrial Database

An industrial database was established in 1989 by the Department of Enterprise and Employment The database which is a centralised information source holds information 1 on the performance of individual firms which includes data on jobs exports and turnover and also grants approved and paid

Certain data have not yet been integrated into the system These include marketing expenditure and export performance data from An Bord T rachtala certain science and

This information is obtained from the Annual Emplaymenc Suruey and che Irish Economy Expenduures Suruey

technology grants administered by Forbairt and grants paid by County Enterprise Boards and under the LEADER programme This reduces somewhat the usefulness of the database for evaluating effectiveness

The Department of Enterprise and Employment has engaged systems consultants to review the industrial database and recommend how it might be further developed

Annual Employment Survey

In line with its mandate to co-ordinate industrial development activity Forfls carries out an employment survey towards the end of each year The survey is an annual census of employment in manufacturing and international service companies The response rate is normally close to or at 100 per cent The data received is recorded on a computerised database In 1994 approximately 6000 companies were surveyed

This survey provides the basic data to enable the industrial development agencies to assess the impact of their activities The survey facilitates the calculation of job gains job losses number of first time jobs created and cost per job sustained

Irish Economy Expenditures Survey

The purpose of this survey is to measure the domestic impact of the manufacturing and international services sectors in the Irish economy To do this the survey collects data on sales and profits of companies together with their expenditures on labour costs raw materials and services

The survey was first undertaken in 1983 At present a series of data over 10 years exists which allows the performance of the manufacturing sector to be analysed

Targets Monitoring System

The Targets Monitoring System (TMS) is a computer-based tracking mechanism in Forbairt which assists in monitoring the performance of companies

Finl time Obs are calculated on the basis of increases in empluyment above the peak empluyment level achieved in the previous five years

Cost per job sustained is the average cost offirst time jobs created and sustained over a seven yearpenod

Appendix F

At present approximately 2600 companies are tracked using the TMS It is updated on a quarterly basis The TMS calculates first time jobs on the basis of forecasts at company level

Department Review of Industrial Performance 1980-1990

The Department of Enterprise and Employment analysed the performance of Irishshyowned industry over the period 1980-1990 It examined the survival and employment record of firms the changing structure of industry (in terms of size and sector) and the degree of success in converting approved jobs into actual jobs

The study found

bull State funding of indigenous plants which existed at the end of 1980 produced no net employment gain over the subsequent decade

bull the system of evaluation of projects prior to their approval required urgent review

With regard to firms which existed in 1980 and which received grants amounting to

pound416m (in 1990 prices) the analysis found that employment in these plants fell by 30000 over the 10 year period Existing firms that did not receive grants in the period also lost jobs (33000) and at a faster rate

Irish-owned firms which started in the period 1981 to 1990 received pound253m in grants and accounted for 28000 jobs at the end of the period New firms which did not receive grants added some 7000 jobs

Review of Small Industry Measures

Measure 1 - Enterprise Development Programme

The objective of this measure was to encourage middle and senior managers and professional people in private industry and the public service to set up their own businesses

An Enterprise Development Programme (EDP) team works closely and interactively with its client base Loan guarantees working capital interest subsidies capital grants rent subsidies and training grants are available for projects A negotiated equity stake is also taken in all new EDP projects Over the period of the programme 136 projects were assisted with a resultant outcome of 998 gross jobs

Regional Development Measurer ~~~~~~~~~~~~~

While the external evaluators found this to be a valued measure they recommended that an annual survey should be carried out which would determine profitability survival rates expectations of companies achievements of the programme and level of satisfaction

At present the only indicators being generated are total expenditure number of jobs created and number of projects assisted We would recommend improving performance indicators and suggest the following

bull number of businesses created bull cost per job created bull survival rates bull rates of expansion

Measure 2 - Mentor

The objective of this measure was to make available the services of a panel of retired and experienced business executives to advise selected firms with development potential

At the end of 1993 there were 844 companies involved in this programme along with 371 mentors

Two surveys were carried out by research assistants taking part in UCDs Marketing Development Programme

bull The first of these sought the perception of assisted companies of the usefulness of the measure It found that overall 80 per cent of companies believed that they had benefited

bull A second survey in 1994 found that effectiveness and relevance of mentors was rated highly by the majority of companies and most companies had experienced increases in sales and taken on extra staff

With effect from 1994 all companies which avail of the programme are asked to evaluate its effectiveness and relevance to small business

--------Appendix F

Measure 3 - Software Support

Under this measure a Director was appointed to work with the Information and Computer Services Association and the State agencies to promote the development of the software sector and provide advisory support to emerging Irish software companies

The Director was to work with the smaller local and mainly Irish-owned firms to secure extra business with the aim of increasing employment in such firms from 1225 in 1988 to at least 3000 by 1993 A second objective of the measure was to bring about an increase in the size of local firms

According to a survey carried out in 1993 there were 336 indigenous software companies with a total employment of 4495

The external evaluator agreed with the steps and initiatives in hand at the National Software Directorate (NSD) and also felt that the existence of a separate software measure was justified given the enormous potential of the sector

The Industry Evaluation Unit examined the role of the NSD and its contribution to the development of the software industry in its 1995 report on the software support programme Among its conclusions in this area were the following

bull there was little evidence that the NSD has had an impact on company development with the exception of acting as facilitator for venture capital funding and as a conduit for some overseas contracts

bull much of the action taken to address industry weaknesses appeared to be ad hoc without reference to an overall plan for the industry and the direction it should take

bull there was a great deal of confusion over its role among industry members

bull its role had been primarily that of an influencer and catalyst at industry-wide level It was therefore difficult to put a value on the NSDs contribution and to measure its direct impact on the industry

Nauonal Software Directorate survey ofthe software mdustry

-------------middot- middotshy

____________Regional Development f_e_as_u_r_es___________

Measure 4 - Irish Productivity Centre

The Irish Productivity Centre (PC) is jointly owned and controlled by employers and trade unions through IBEC and the Irish Congress of Trade Unions Its main objective is to help raise the productivity of Irish business firms by

bull helping business become stronger and more competitive bull developing more effective human relations with emphasis on work organisation

and work involvement

The IPC pursues its objectives by providing specialist advice and assistance to small and medium-sized companies in areas of production finance marketing personnel industrial relations and general management

Over the period of the programme the PC contributed 6720 consultancy-days assisting 341 companies

The external evaluator found this to be a cost-effective programme as the cost per consultancy-day had been reduced considerably following restructuring of the IPC and the targeted number of companies had been exceeded Users were generally satisfied with the service they received although this depended on the suitability of the consultant for a particular project

A survey conducted by the IPC indicated that of the companies assisted during the life of the programme 9 were no longer trading 34 have less than 95 per cent of their previous employment 262 have stable employment and 36 increased employment by more than 5 per cent

Measure 5 - Business Innovation Centres

There are four Business Innovation Centres (BCs) in Ireland at Dublin Cork Galway and Limerick Their objective is to stimulate entrepreneurship and to encourage the introduction of innovative processes into local industry and services by providing

bull practical support and advice bull access to sources of seed capital bull access to appropriate resources of State agencies

The external evaluators found that in general users view the BCs very positively although there seems to be an impression that marketing and international contacts could be bulltronger They also felt that value for money was satisfactory as the measure was a low cost one

A survey carried out in 1992 found that around 90 per cent of companies who responded viewed the BICs in a positive light However in order to carry out a more thorough assessment of the impact of the centres regular surveys should be conducted to establish a detailed profile of users their expectations satisfaction profitability and suggested improvements Information on the success and failure rates of companies assisted under the measure would also be useful

Measure 6 - Niche Studies

This measure funded studies to examine the potential for small scale business development in specific niche areas Such studies evaluate the structure and capabiliry of a specific sub-sector highlight its strengths and weaknesses identify key determinants of competitive success and consider market opportunities for small firms 22 studies were completed over the period 1990-1993

While the external evaluators stated this was a useful measure they felt that a detailed value for money evaluation was not possible given the available information

It is difficult to assess the impact of studies as no information is published showing how they influence the promotional programmes of the State agencies Nor are there any details available of the number of jobs opportunities identified

Linking studies to particular activities and hence measures would facilitate a review of their impact

Measure 7 - International Services

Scope of the Meamre

This measure was aimed at developing indigenous international servicesprojects particularly those which are highly skilled and have the potential to add value

Expenditure on this measure was lower than anticipated because firms in the sector qualified for other State assistance thereby reducing their recourse to these funds 3052 gross jobs were created in the sector which exceeded the original target of 2000

The external evaluator felt that the scope of this measure needed to be widened as it only included 10 designated service areas comprising companies with at least 50 per cent of their sales sourced in export markets

It is very difficult if not impossible to assess the impact of this measure in isolation as a full range of measures are available to those firms classed as international service companies

Review of Medium-sized Industry Measures

Measure 1 - Advisory Support

This measure aimed to assist companies achieve export-based growth compete successfully internationally and stimulate and support an accelerated growth performance through the following

Company Development Programme

The Company Development Programme (CDP) provided advice and a facilitating service which enabled firms to view their business situation strategically and prepare appropriate business plans The activity which was introduced on a pilot basis in 1984 gradually developed from assisting 29 firms in 1989 to assisting 46 firms in 1993 CDP led to the formulation of an approach now used in the bulk of assistance cases

Appendix F

National linkages Programme

The National Linkages Programme was designed to help companies capitalise on domestic market opportunities and use the experience and skills gained in this market place as a platform for subsequent export growth The programme

bull provided information briefings to purchasers and suppliers bull facilitated the development of groups consortia to secure larger contracts bull carried out workshops on international competitiveness and best practice bull encouraged overseas alliances both technology and market based

The value of business associated with the National Linkages Programme over the lifetime of the programme was estimated at pound287m

Business Partnerships

Business partnership was seen as a key clement in helping firms to overcome the problems associated with relatively small scale when attempting to penetrate international markets

The aim of the measure was to stimulate an accelerated rate of growth in Irish companies by identifying and promoting potential for alliances with overseas companies There were 44 business partnerships during the period 1989-1993 and another 28 remain under consideration

The external evaluator felt that the Advisory Support measure while being quite small in expenditure terms was very useful Generally targets were met within budget However while this measure formed a key component of industrial support the sectoral organisation of agencies makes it difficult to assess definitively the value for money of the measure

The Industry Evaluation Unit carried out a review of the effectiveness of the CDP Its overall conclusion was that CDP played a useful role especially in addressing the needs of those companies in the 30 - 200 employment range which find it difficult to engage in strategic analysis and planning

Progress was measured by recording the number of firms assisted which is inadequate for impact evaluation purposes While the impact is difficult to assess since many

Regional Development Measures -----~

firms avail of other measures its effectiveness could be gauged from surveys of assisted firms

National Linkages Programme

The only monitoring required by the programme for this measure related to the amount of new business generated annually It is not possible to adequately assess impact without other basic indicators such as the number and type of linkages achieved and resultant increases in employment profitability and sales

These indicators could be derived from monitoring the development and performance of companies involved in the programme

Any evaluation of Business Partnerships would necessarily involve collating performance indicators such as sales productivity profitability and employment levels This needs to be addressed

Measure 2 - Investment in New Facilities

Scope of the Meamre

This measure utilised a range of grant schemes to assist businesses to fund strategic development initiatives Grants were made available towards the cost of fixed assets which included site development buildings new machinery and equipment

Under this measure grant assistance of up to 60 per cent of eligible capital assets in designated areas and 45 per cent in non-designated areas was available towards eligible fixed assets investment in new green field projects The rate of assistance for expansions of existing projects was limited to 25 per cent

Priority was to be given to those companies identified as having substantial growth potential Assistance could also be given in the form of rent subsidies interest subsidies and loan guarantees During the programme 867 projects were assisted under this measure

Areas deemed to be in need ofspecial assistance

The potential to increase sales by owr 20 per cent 01leY a penod ofthrte to four years

-----------Appendix F

The external evaluator noted that this measure was central to employment creation and felt that the measure was well directed and good value for money

During the life of the programme 28749 gross jobs were created in medium-sized industry against a target of 28000 The bulk of these jobs 23032) are reported by Forbairt as anributable in some degree to this measure Surveying assisted companies would be a useful exercise in attempting to determine the value of this measure

Measure 3 - Technology Acquisitions

The objective of this measure was to encourage Irish companies to investigate and acquire new technology or products through licences patents or know-how agreements with overseas partners Grants of up to SO per cent of approved costs were available subject to a maximum of pound250000 for any project

This measure did not achieve its objective because of the lack of demand and slow take-up of the available funds pound156m was expended assisting 44 companies under this measure against estimated expenditure of pound933m

The reasons for the lack of demand were

bull industrial development agencies imposed a stnct interpretation of what constituted technology acquisition

bull the number of companies with management structures and resources necessary to put technology acquisition in place was limited

The only indicators available in respect of this measure were the level of expenditure and number of firms assisted The external evaluator recommended that the following indicatorsinformation be collected

bull profile of users bull proportion of sales arising from agreements bull market share gain

In addition non-users should also be surveyed and profiled The availability of such data would greatly facilitate an assessment of the impact of this measure Additional

indicators such as product survival rates and growth rate of companies may also be useful in this regard

Measure 4 - In-Company RampD

The objective of this measure was to stimulate companies to plan and undertake commercially successful product development work Over the programmes lifetime pound2512m was spent assisting 1038 companies Assistance was provided to individual firms towards the cost of setting up permanent RampD facilities and the employment of full-time research staff Such costs could include building equipment materials and personnel costs directly related to RampD activities The maximum grant support available for product development was 50 per cent while an upper limit of 30 per cent applied in the case of process development

Evalrtation of the Measure

The external evaluator noted that this was a sought after measure and continued to be central to the development of medium-sized industry

The only monitoring undertaken was on the basis of expenditure and the number of companies assisted In order to carry out an analysis of this measure the external evaluator felt that the following indicators would be relevant

bull number of products developed bull volume of sales therefrom bull profitability of companies assisted

The following performance indicators may also be useful

bull number of product development projects undertaken bull market share gained by products developed bull growth rate of companies

Measure 5 - Equity

This measure which provided State support in the form of equity was introduced in 1992 It was aimed at developing businesses capable of competing successfully on international markets

Finns which had been identified by the industrial development agencies as performing well or with the potential to perform well were targeted

Distributions including dividends are retained by the industrial development agency concerned as income Since its introduction in 1992 pound191 lm was spent assisting 132 companies

Evaluation ofthe Meas11re

The external evaluator strongly supported the development of this measure as it was considered critical to the development of a competitive industrial base

The absence of relevant impact indicators for this measure greatly hinders evaluation of its effectiveness Examples of basic indicators which could be put in place for this measure include

bull number of jobs created bull return on investment bull increase in sales profits exports bull growth rate of companies

The significance of the measure to assisted companies could also be determined by a survey approach

Measure 6 middot AnalysesStudies

Scope ofthe Meas11re

The objective of this measure was to identify appropriate sectoral development strategies and facilitate a bener understanding of market opportunities in Ireland the EU and external markets

A total of 5 I studies which examined the raquotructure and capabilities of various sectors were completed The key sectors studied were engineering electronics high-fashion clothing software specialised pharmaceuticals and healthcare

The only monitoring undertaken was on the basis of study costs and the number of studies completed

The external evaluator felt that while this was a useful measure a definitive value for money assessment would be difficult given the available information and recommended

bull a more focused approach with studies planned for each main sector bull an annual review of studies be published bull a cost per study indicator be introduced which would take account of the

particular type of study being completed and its completion time

Appendix G

Marketing Administration and Evaluation

Administrative Structure

Overall responsibility for the programme lay with the Department of Enterprise and

Employment This Department chaired and provided the secretariat for a monitoring committee which reviewed progress under the programme

The Department of Tourism and Trade had responsibility for marketing policy and

overseeing the measures Public funds available to An Bord T rlchtlla (ABT) whether sourced from the Irish Exchequer or the ERDF are provided through the

Department of Tourism and Trade

At the inception of the programme in 1989 C6ras Trachtlla (CTT) was responsible

for seven measures which related to export markets The Irish Goods Council (IGC)

was responsible for four further measures which related to the Irish domestic market

In 1991 CTT and IGC were merged to form ABT As a result ABT assumed

responsibility for all the measures

The implementation of the measures by ABT involved an increase in administration

costs as can be seen from Table Gl However such costs increased by a modest

amount relative to gross expenditure on marketing support

Table G1

ABT administration performance 1988-1993

Year Gross Receipts Net Overheads I Overheads I spend private spend administration administration

sector as of gross poundm poundm poundm poundm spend

1988 255 37 218 149 583 1989 26S 43 221 152 576 1990 323 56 268 158 490 1991 363 53 310 157 431 1992 400 59 341 174 436 1993 453 74 379 194 429

Note In relation to the penod 1988 to 1990 these figures are derived by adding together figures

from the Annual Accounts ofC6ras Trachtdla and the ruh Goods Council Source An Bord Trachtdla

--------------- Regional D11Jelopment Measur~----------shy

Cost Recovery

The rate of recovery by measure in 1993 is shown in Table G2

Table G2 Marketingmiddot recovery by measure in 1993

Measure Expenditure Recovery Recovery poundm poundm

Market Development 128 11 86

2 Marketplace Services 54 10 184

3 Market InFormationResearch 55 01 10

4 Design and Product Development 08 01 160

5 Promotion 61 10 158

6 Regional MarketsInternational 53 05 98

7 Targeted Marketing Consultancy 66 21 323

The highest level of recovery was achieved by the Targeted Marketing Consultancy

measure (32 per cent) Recovery under the remaining measures ranged between I per

cent and 18 per cent

Grants for Marketing

Currently there are two grant categones Marketing Activities grants have a

maximum value of pound10000 per company per annum Targeted Marketing

Consultancy (TMC) grants are generally much larger All TMC applications come

before an ABT Grants Comminee_ As well as ABT personnel this committee has

representatives of the Department of Tourism and Trade Forbairt and IDA Ireland

The procedures employed in the selection and appraisal of projects were generally

satisfactory While information exchanges between ABT and other industrial

development agencies occurred at grant approval stage there appeared to be scope for

improvement A common online system between relevant departments and agencies

would assist decision-making by ABTs project executives when assessing grant

applications The provision of such a system is being considered in the context of a

review of the industrial database which has been commissioned by the Department

of Enterprise and Employment and Forfas

Appendix G___

All the major reports on industrial policy since 1980 recognised the need for Departments to have appropriate information on computer media to enable them to assess the effectiveness of industry support programmes

The first phase of a Departmental industrial database was established in 198990 While data from the IDA SFADCo and Udarls na Gaeltachta were successfully integrated data from ABT and Eolas (now part of Forbairt) have not yet been validated by ABT and the Department of Enterprise and Employment

The Department of Enterprise and Employment has engaged consultants to review the industrial database and recommend how it might be developed The development of the database including the incorporation of relevant data from all agencies would facilitate the assessment of marketing measures

Possible Approach to Future Evaluation

Impact at Firm Level

Two types of measure can be distinguished

bull The first type of measure is largely concerned with providing market information The Market InformationResearch and Marketplace Services measures fall into this category These may not give rise directly to sales

bull The second type of measure while having an information component is largely concerned with providing market access or improving marketing capacity Such measures could be expected to lead to sales in the short-term

Impact of the measures on firms could be gauged by examining

bull export performance bull user perceptions of the measure bull indicators of independent marketing capacity

Export Performance

ABTs Annual Exporter Survey provides a significant amount of information on export performance However the export sales of firms which benefit from ABT assistance need to be analysed Export performance can be due to many different factors including the characteristics of the firms themselves such as sector size and

ownership Also relevant are the financial and non-financial inputs from other State agencies Statistical analysis is required to establish the extent to which export performance is related to the marketing measures This kind of analysis has not been carried out for many years

User Perceptions

In order for measures to influence firms marketing activities these firms must view the measures as beneficial User perceptions of all measures should therefore form a part of impact evaluation This is especially the case for those measures which may not lead to export sales in the short term or may have an impact only in conjunction with other measures

ABT has commissioned a comprehensive Customer Care survey of all firms who avail of its services in order to establish accurate profiles of users and to ascertain their attitudes to the supports provided

Independent Marketing Capacity

An important indicator of the longer term impact of the measures is the extent to which assisted firms develop marketing capacity which is not dependent on further State support The development of an independent marketing capacity 1s an indication of the ultimate success of State support measures

Other Evaluation Options

The quantification of export performance is a fundamental prerequisite to enable evaluation to occur However an even more informative analysis can be achieved if other quantitative informati0i1 is gathered or derived Consideration should be given to the compilation of the following indicators

bull Export propensity

It would be expected that exports as a percentage of sales for assisted firms would improve over time This would be easy to monitor as exports and sales data are collected by ABT in its Annual Exporter Survey

bull Export market diversification

The extent to which assisted firms gain a foothold in and increase their exports to new markets without losing sales in traditional export markets would be another indicator of improving marketing capability Again the raw data are contained in the ABT Annual Exporter Survey

bull Change ofmarket share in served market

This is an important predictor of business and employment growth In this approach the identification of served market would be an important and complex issue for each firm Accordingly this concept might be investigated by analysis of a sample of exporters

bull Profitability This would be the ultimate test of marketing capability and strength While ABT data on profitability are limited Qargely to Measure 7 companies) profitability data are held for many mediumlarge firms in a Department of Enterprise and Employment industrial database

bull Employment A good deal is known about the relationship between output and employment by sector from the Census of Industrial Production published hy the Central Statistics Office The extent to which increased exports by assisted firms were associated with increased employment would be worthy of investigation

There is merit also in a categorisation of assisted firms on the basis of ownership While aid is made available to indigenous firms defined by ABT as firms whose marketing control is located in Ireland it would be useful to be in a position to analyse performance based on ownership also This is particularly important in view of the fact that the marketing performance of foreign owned companies with marketing control in Ireland was found in a 1986 study to be substantially better than that of Irish owned companies

Review of the Individual Marketing Measures

Measure I - Market Development

The objective of this measure was to develop international markets and the marketing performance of Irish SMEs

Building Irelands Business lcrspect1vesfrom lIMS Charles Carroll Ml 1985

Review of the obectives and activities of Cciras Trachtdla Department of Industry and Commerce 1986

pound237m was spent on the following

bull Sectoral Marketing Programmes which identified areas of competitive strength in Irish industry and assisted industry in pursuing the opportunities identified

bull Group Marketing which aggregated the resources of a group of companies to achieve economies of scale in areas such as office facilities research and promotion

bull The Company Development Programme which was operated in conjunction with other organisations for example Forbairt to provide strategic and marketing supports to companies

Eva11ation of the Measure

Apart from sectoral sales growth it would appear that only activity indicators (such as the number of participating firms) were developed This is unsatisfactory particularly given the scale of the expenditure under this measure There would appear to have been little information available to monitoring departments and the Industry Monitoring Committee which would help identify the firms which benefited most the sectors in which they were located and the markets which they targeted Activity indicators should be supplemented by an assessment of the export sales growth performance of participating firms and a survey of user perceptions of the service

Measure 2 - Marketplace Services

The objective of this measure was to provide marketing and operational assistance (through ABTs overseas network) to Irish firms which would otherwise not be able to operate effectively in overseas markets because of lack of experience and the scale of operations

pound89m was spent on a number of services to assist Irish companies including market introductions field assistance and the organisation of visas for exporters A London Business Centre which provided office facilities for exporters visiting London was also funded under this measure

A BT activity under the Company Development Programme was insignificant However Measure 7 Targeted Marke11ng Consultancy might be regarded as ABTs main Company Development neasure

_ppendzx G

Only output indicators for example the number of services and visas were available This needs to be supplemented by

bull a profile of users (by sector market firm size etc) bull a survey indicating user perceptions of the services provided

While some immediate impact on export sales might be expected (via introductions to agents for example) the measure was largely concentrated on providing market information which might or might not lead to a decision on the part of the firm to

export Accordingly quantification of resultant export sales was probably less relevant

Measure 3 - Market Information and Research

The objective of this measure was to ensure that Irish companies had the knowledge with which to make well-informed market and marketing decisions

The main activity funded was an information centre in Dublin This centre offered the following services

bull tradevisatravel information - providing information on items such as tariff barriers documentation required and visa requirements for entry to foreign countries

bull market information - by holding a stock of market research reports and current marketing journals as well as access to a range of on-line datJbases

bull carrying out and commissioning market research

The centre was also in charge of the production and distribution of the Irish Exporters Handbook pound156m was spent on these services

Evalllation of the Measure

The external evaluator recommended that ABT should

bull compile an accurate profile of user groups of the information centre

bull track the impact of publications on target sectors co ensure that the publications are giving value for money

bull charge for trade enquiries and database searches where appropriate

bull co-ordinate information services with universities the Irish Management Institute and other related bodies to avoid duplication

Measure 4 - Design and Product Development

The objective of this measure was to assist Irish SMEs in the identification development and promotion of new and adapted products

pound3Sm was spent on the following services to companies

bull Individual Company Counselling where ABT staff assessed whether improvements could be made in product design packaging and promotional literature

bull Design Intelligence Workshops which assisted exporting companies in keeping up co date with current market trends and developments

bull Group Development Projects where groups of companies gathered design and marketing information on a shared cost basis

bull Advanced Product Programmes co assist in the preparation of new product concepts for identified market opportunities These product concepts were developed by consultants for market or consumer research and testing

A survey of user perceptions of the Advanced Products Programme was carried out This survey reported quite a high level of user satisfaction and significant product development activity in the small sample of firms surveyed The external evaluator also reported favourably on the measure

Survey ofthe Effectiveness ofthe Specialised Advice Scheme Advanced Product5 Programme) operated by An Bord Tracheaa Crotty and Associates 1993

Measure 5 - Promotions

The objective of this measure was to organise export marketing activities on a group basis thereby giving Irish SMEs a market profile which individually they could not hope to achieve

To achieve the objectives of the measure ABT organised the following events on which pound164m was spent

bull Trade Fairs bull Outward Buyer (Trade) Missions bull Inward Buyer Missions bull Seminars

The external evaluator concluded that ABT was delivering the various activities under the measure efficiently However available indicators only related to the number of trade fairs and buyer missions that took place and there was no follow-up information on the effectiveness of these activities The evaluator recommended that ABT develop a framework for evaluating events on an on-going basis

A detailed evaluation of the measure was carried out in 1994 This reported a high level of satisfaction on the part of programme participants The evaluation highlighted the importance of tracking the exporting performance of participating firms and the need to develop adequate information systems

As these services were focused on markets and firms with potential a direct return in terms of export sales should be expected Output indicators were available (number of trade fairs trade missions etc) and participants were surveyed These indicators should be supplemented by an assessment of export sales performance of participating firms

Measure 6 - Regional MarketsInternational Partnerships

The objective of this measure was to increase awareness of Irish products and exports in selected regions in Europe and to develop linkages between Irish SMEs and firms

Evaluation ofGroup Promotions Programme Goodbody Economic Consultants 1994

Regional Development Measures ~~~~~~~~~~~~

from other countries with a view to developing opportunities in third country markets

pound166m was applied to the following market development activities

bull establishment of institutional partnerships within the targeted markets in Europe

bull an awareness campaign of Irish products and companies which typically included press briefings conferences and information stands at trade fairs

bull business introductions to develop business links between Irish and foreign firms

bull business development through exhibitions and identification of opportunities

bull representation through support services and marketplace services once business links have been established

Targeted regions were selected on the basis of their wealth and growth potential They included Catalonia Lombardy Baden-Wurtemberg Rhone-Alpes Portugal Benelux and Saxony

An ABT review of the Regional MarketsInternational Partnerships measurebull concluded that valuable inter-regional links and increased exports had been achieved and that there was a high level of support for the measure among Irish SMEs However the level of detailed knowledge of Irish companies in EU markets needed to be improved

The external evaluator welcomed that review but stressed that it was merely a statement of affairs rather than a critical evaluation It was recommended that a detailed evaluation by ABT should examine the effectiveness of the measure as to the appropriateness of the selection criteria and the strength and weakness of the five implementation phases adopted for the measure

The last component of the stated objective to develop linkages between Irish SMEs and firms from other countries with a view to developing exports to third country markets was very ambitious and was not achieved to any significant extent The main objective in practice was to increase exports of Irish products in selected markets and further business links Accordingly the measure was really a

Evalua11on ofRegional MarketsInternational Partnerships ABT 199)

concentrated amalgam of activities which could in principle be promoted by any ABT overseas office

Measure 7 bull Targeted Marketing Consultancy

Scope of the Meamre

The objective of this measure was to assist Irish SMEs in developing overseas marketing capability in new markets

To achieve the objectives of the measure ABT provided financial assistance to firms to draw up and implement market development plans for export markets

Participating firms increased sales by pound284m up to 31 December 1992

The evaluators noted that

bull only two out of every three plans proceeded bull small companies had difficulty meeting the eligibility criteria which required them

to invest at least pound150000 over two years

Remedial action was taken by reducing the minimum investment level to pound60000 and encouraging thorough appraisal of targeted markets by providing firms with increased consultancy assistance

Impact was assessed by analysing incremental sales by participating firms

Appendix H

Water and Sanitary Services Administration and Evaluation

Project Administration

Water and sanitary services works are carried out by 88 local authorities (34 county councilscounty boroughs and 54 boroughurban district councils) under the general supervision of the Minister for the Environment

Proposals for public schemes originate with individual local authorities who send preliminary reports to the Department of the Environment In general most elements of water and sewerage schemes are designed to meet anticipated demand over the following twenty years

Funding and Cost Control

The full cost of approved schemes is made available to local authorities by way of capital grants from the Exchequer Where a particular industry benefits from water and sanitary services investment that industry is expected to make a contribution covering at least part of the capital andor running costs involved

The procedure for monitoring the cost of schemes requires a breakdown of estimates and actual costs under the specific elements of works on the scheme Where there are cost increases written explanations are required from the local authorities Specific details of cost overruns are sought and grant payments are withheld until satisfactory explanations are received

Programme Review

In May 1993 evaluators were commissioned by the Department of the Environment to carry out a study of investment in water and sanitary services funded from the programme and a related ERDF programme ENVIREG

EN VTREG is an EU initiative covering the protection ofthe environment and the pro1notzon of sustainable development The overall aim of the Irish ENVREG programme uas to improve and protect the environment and to foster econo1nic develop1nent

___________ _ Regional Development M~as_u_rn

The study had two main objectives

bull to develop a project appraisal system bull to carry out an economic evaluation of the programme

Project Appraisal System

The main recommendations of the evaluators in regard to the appraisal of projects were

bull economic appraisal of projects should be done at the earliest possible stage bull information upon which to base such appraisals needs to be accumulated by local

authorities bull objectives for each proposed project should be clearly specified bull the purpose of increased capacity needs to be stated bull the number of beneficiaries should be specified bull the impact upon the stock of serviced land should be specified and take into

account existing stock so as to avoid over-capacity bull an attempt should be made to specify impact on industry in particular the

number and type of firms expected to use the increased capacity bull appraisal methods should be standardised bull projects should be ranked using a defined methodology

The evaluators recommended a methodology described as Multi-Criteria Analysis (MCA) which following a pilot study they found could provide a useful and practical framework for ranking water and sanitary services projects However a number of problems were evident

bull the methodology is constrained by existing data deficiencies

bull it can only apply within categories of water and sanitary services projects and would not apply between them

bull it is not appropriate for comparison of water and sanitary services projects with other alternative uses of EU funding

At August 1995 the applicability of this system was still being considered by the EU The Department of the Environment have concluded that the use of MCA is not considered by the EU as a valuable way of ranking projects The Department would envisage its application only as a guide to initial prioritisation of projects A method which combines cost financial benefits and other effects is now being proposed

The evaluation was based on financial progress at the end of September 1993 and physical progress at the end of June 1993 We have reviewed the outcome of that evaluation and in addition the following paragraphs include any updating of facts as appropriate

The programme was examined under the following headings

bull Financial outturn bull Physical progress and capacity bull Environmental improvements bull Economic impact

Financial Outturn

Actual expenditure for the first four years of the programme was on average pound7m a year above the original forecast level

The evaluarors noted that

bull the programme comprised the following scheme types

75 per cent of schemes cost pound3m or less the 5 largest schemes accounted for pound6 lm or 24 per cent of expenditure

bull departmental financial data was deficient in that the cause of overspending on projects could not be readily isolated

Physical Progress and Capacity

The evaluators did not relate progress at June 1993 to original targets nor did they comment on variations in expected outturn over the period of the programme

The reported programme output altered considerably after the date of the examination by the evaluators Qune 1993) In fact the reported expected outturn vtried significantly over the programmes lifetime It is not however possible to isolate the cause of this variation for the reasons set out in paragraphs 710 to 712

The Department ofthe Fnv1ronment itated that th resulted at least m part from the f~ct that final accounts on schemes are not normally available until 2 to J years after the scheme has been substantially completed

------Regional Development Measures

It was estimated that projects funded from the programme would increase the treatment of raw water capacity by approximately 13 per cent and supply an additional 380000 mday while providing water storage capacity of around 87000 mday

Under the sewerage measures investment at project level would result in a total waste water collection capacity of approximately 451500 mday an estimated treatment capacity of BOD 1435 tonnesday and has provided infrastructure to handle flood flows of approximately 54 million mday

Details were not provided on the projected capacity increase which the investment could have been expected to achieve

While an overall estimate of the total national stock of existing sewage capacity was not available at the commencement of the programme with the result that the percentage increase in sewage capacity could not be calculated by the evaluator the following action has been taken to remedy this deficiency

bull The Environmental Research Unit (ERU) has carried out a needs analysis in respect of water and sewerage infrastructure on a county by county basis This resulted in the compilation of an inventory of existing services

bull A sewage sludge inventory was compiled in 1993 following a survey of all local authorities with responsibility for waste water collection treatment and disposal

The evaluators pointed out the need for collection and assimilation of capacity data in a standardised format and at a central location Ultimately such reporting should give a better basis for assessing programme output than the physical measures set out in the programme

The evaluators also attempted to quantify programme output in terms of additional capacity provided to industrial sites While this exercise was possible in theory it could not be completed due to data deficiencies In particular the relevant figures were not available from the industrial development agencies

The evaluators noted that most land in the ownership of industrial development agencies consisted of unserviced sites lacking water supply and sewerage connection

BOD (Bwchemical Oxygen Demand) is the quantity ofoxygen rltmoved from a water sample de co bacteria action over a specified time period

A Strategy St11dy on Options for the Treatment and Dzsposal of Sewage Sludge in Ireland Weston FTA Lui November 1993

Appendix II

No data existed on medium and small sites and only limited data on larger sites which could be developed to serve food processing or fine chemical activities

From the information available the evaluators noted an apparent shonage of suitable sites for large chemical or food processing plants In order to attract such industries critical factors are the provision of large quantities of water and the capacity of the local sewerage system

The evaluators concluded that there is a need to assess the additional volume of land that has been serviced and the additional capacity that has been provided by waste water and water treatment plants under the programme They also noted that in most cases it is too early to assess if advance provision of sewerage and water supply capacity has led to economic development

In relation to the provision of water and sanitary services to industrial sites the Depanmcnt of the Environment stated that it is always ready to consider funding schemes which would assist the location of major industries

Environmental Improvements

The water quality data to 19906 suggests that the quality of drinking water over the period 1989-1990 was satisfactory and the evaluators attribute some reductions in the incidence of coliform iron fluoride and turbidity in Irish drinking water to expenditure under the programme

The increase in the number of monitored beaches with Blue Flag awards indicates that the programme has contributed to the improvement of beach quality

The evaluators note however that environment related data are constrained by difficulties in establishing a chain of causation between investment and impact

The evaluators also stated that there arc gaps in the range timeliness and quality of available data on environmental indicators These data limitations make it difficult to assess the impact of expenditure under the programme on the environment

Compiled by the ER U

Awarded annually by a European 1ury

Regional Development M~as_ur_e_s___________

Economic Impact

While economic benefits are clearly present it is extremely difficult to isolate precisely the contribution that improved sanitary and water supplies make to employment growth industrial development and tourism

The evaluation found that the programme would contribute to economic welfare as follows

bull supporting jobs bull facilitating the marketing of tourism bull enhancing Irelands green image which is a source of competitive advantage

These effects were not quantified and the evaluators stressed the need for more research on the employment effects of such spending

Economic growth occurred in the industrial sectors which arc heavy users of water and sanitary services (wet industries) over the lifetime of the programme These industries accounted for just over one third of gross industrial output in 1992 and all showed growth over the period to 1992 While it is not possible to directly anribute growth in this sector to the programme the evaluation concluded that it was likely that the investment assisted this growth and reduced or avoided infrastructural constraints It also found however that there did not appear to be a strong link between the geographic location of foreign owned companies in Ireland and new investment in water and sanitary infrastructure However this may be partly due to the fact that the impact of relatively recent and on-going construction has not had time to come to fruition

Difficulty of Economic Evaluation

There are broadly two approaches to measuring the economic impacts of water sanitary investments

bull establishing the relationships between investment and output and employment bull assessing the benefits of investments to users

Work on the methodology in these areas is at an early stage and is very much in the area of research Accordingly economic evaluation does not appear to be a practical

Wet industries are slaughtering and preserving ofmeat the three chemical sub-sectors basic induscrial pharmaceuticals and other chemicals) manufacture of dairy products rhe woof ind1stry and ocher textiles

Appendix H__

course in the shon-term panicularly in view of some of the features of water and sanitary services investment which render an assessment of their economic impact difficult These include

bull Water and sanitary services investments are designed to cater for demands which may not arise for some time into the future Examination of the current demand for facilities which have recently been subject to investment is not likely therefore to be very revealing

bull To some extent capacity is provided to cater for demand which is lumpy in nature and which could arise at any time throughout the planning period for instance on the arrival of a wet industry

bull Individual projects may form only pan of an integrated investment which may take place over an extended time period and which does not give rise to economic benefits in the shon-term

bull To the extent that the investments have an environmentalhealth objective their economic impact is indirect and may take effect only after some time has elapsed

These considerations suggest that examination of the economic impact of investments within the time frame of the programme would not be fruitful and that a longer time perspective is required

Assessment of Impacts

In view of the difficulty in carrying out economic evaluation the best prospect for meaningful effectiveness evaluation appears to lie in assessing achievement by means of intermediate indicators These can be used both to monitor the progress of panicular investments and ultimately to inform a view as to the economic return from them Applicable indicators are considered below

Water S14pply

Water supply effectiveness can be measured under three headings

bull the reliability of the water supply bull the quality of the water supply bull the quantity used

___________R_e~g~w_n_al Development MeaJures

This suggests that the impact of investment in this area could be gauged by

bull logging interruptions to supply before and after investment bull establishing the change in quality of water supplies before and after investment bull identifying the extent to which anticipated demand for water has in fact arisen

and the extent to which this has occurred because development constraints have been relaxed

Logging interruptions to supply could be achieved simply by requmng local authorities to introduce such an information system

Water quality is currently assessed by an ongoing sample survey conducted by the Environmental Protection Agency (EPA) which assesses the extent to which the maximum admissible concentrations of coliforms aluminium and other such substances laid down in the Drinking Water Directive (80778EEC) are breached There would be a need to extend this survey to include local areas where water supply investment projects are proposed

Sewerage Infrastmctllre

Key indicators of the effectiveness of sewerage treatment are

bull the quantity of effluent treated bull the quality of the receiving waters

The impact of investment in sanitary services could therefore be assessed by

bull identifying the extent to which anticipated demand has in fact arisen and the extent to which this has occurred because of the relaxation of development constraints

bull establishing the quality of receiving waters before and after project implementation

While the 12700 kms of riverstream channel currently subject to water quality survey includes all the main river channel stretches in the State the surveying of estuarine and coastal waters which receive over 80 per cent of the total waste load discharged from the domestic and industrial sectors is more limited

The Department of the Environment has informed us that the EPA local authorities and the Department of the Marine carry out monitoring of estuaries and other coastal waters especially in areas where there is a risk to water quality The EPA is now

building on the work to date by preparing a national monitoring programme for estuaries and coastal waters

The technical assistance allocation under the programme was only spent to the extent of 14 per cent of the original provision of pound440000 The balance was applied to

projects The Depanment of the Environment stated that the allocation had been earmarked for a computer based recording and reponing system which was delayed due to protracted negotiations with the EU Commission

Table of Contents

Glossary

Summary of Findings

Introduction and Overview

Transport

Tourism

Marketing

Pre-1989 Projects

Appendices

copyGovernment of Ireland 1995

ISBN 0-7076-2329-4

P4~H44 I 000 1295 Bruns1middotick Pnss Ltd Gr~0-0 I

22 December 1995

Table of Contents

Chapter 1

Chapter 2

Chapter 3

Chapter 4

Chapter 5

Chapter 6

Chapter 7

Chapter 8

Transport 9

Tourism 29

Marketing 49

Appendices

European Funding

Glossary

--- -- ------

Summary of Findings

Background

CSF 1989-1993

Economic Impact

Specific Measures

Transport

Summary ofFindings

Tourism

Marketing

Pre-1989 Measures

Category Total

poundm

ERDF funding

poundm

Other EU funding

poundm

Perifra I and II

performance

Impact of the CSF

middot------------------------------ shy

General Findings

Chapter 2 Transport

Background

Objectives

Expenditure

Sector

State Airports

Regional Airports

Commercial Seaports

Local Seaports

Rail Freight

Mainline Rail

Forecast

poundm

Outturn

poundm

652 ---------------middot--

Total 90576 86090

to 1994 and 1995

Programme Output

Tran~port__ ___ _

Category

- Bridge Works

Target

50 - 55 kms

75 - 80 kms

About 200 bridges

75 kms

95 kms

161 bridges

65 kms 810 kms

79 bridges

60 kms 565 kms

58 bridges

State Airports

expected in 1993

Regional Airports

Sligo Airport 040

Total 2085

1989 413000

1990 483900

1991 371000 1992 272700 1993 235700

Commercial Seaports

Local Ports

Rail Freight

Mainline Rail

External Evaluation

Programme Impact

Transport

Transport Impacts

Economic Impact

Background

Expenditure

Measure poundm

components

Achievement

Expenditure poundm

Source Forfas

Deloztte and Touche

Other Measures

Chapter 4 Tourism

Background

Expenditure

Total 3309 1372 462 1475

Measures

Measure poundm

6 Caravan parks

8 Marketing 24

Total 1285

Measure poundm

5 Conferences 241

Total 2018

this report

Targets

Tourist 810000 147 100

Business 438000 53 13

Overall 2345000 90 42

To1msm 1989-1993

Overseas Visitors

Tourism

4000 --middotmiddot

~ ~- 2000shyBs

rn gt 0

~ Iz I

-middot--shy

rmiddot

J 11 shy

i-shyIshyL

middot

1901 1902 1983 1904 1905 1906 1987 1908 1909 1990 1991 1992 1993 1994

1988 1993

Attributability

Tourism

Other Findings

Background

Expenditure

2 Mentor 052 064

Total 2720 2250

Measure

Advisory Support

5 Equity

6 AnalysesStudies

Forecast poundm

Total 12488

Actual poundm

growth potential

initiatives

Achievement

53 and 54

Table 53

1989 1990 1991 1992 1993 Total

Gross job losses 5744 7425 6711 6499 5560 31939

Net jobs created 2366 (622) (933) (1330) 455 (64)

1989 1990 1991 1992 1993 Total

Gross job losses 5673 3179 5682 6712 5858 27 104

Net jobs created (292) 3528 (40) (452) (1099) 1645

Evaluation Process

Evaluation Outcome

External Evaluation

Deloiue and To11che

Sectoral Impact

-------------- -middot

Chapter 6 Marketing

Background

Activities

Expenditure

Total 1291 1138

Export Achievement

Markeung

1988 27b

1989 30

1990 32

1991 34

1992 37

1993 middot40

1994 46

b Revised outturn

External Evaluation

Ma_rketmg

Other Issues

Cost Recovery

Marketing

Background

Expenditure

T2ble 71

Total 22184 22188

Programme Control

---middot ---------------------- shy

Project Selection

Programme Content

stages

Programme Outtum

Table 72

Indicator

Number of intakes

Targets

400000

115000

Table 73

Indicator

Number of intakes

Projected outturn

166458

Indicator Targets

secondary 30

tertiary 3 36

secondary 19

tertiary 7 28

bull the volume of

Project Review

Tendering

Physical Conditions

Final Accounts

Background

poundm poundm

Water Services

Pre-1989 lrojects

services proiects

approved

Finance

Current Position

Pre-1989 Pro1ects

Appendices

Appendix A

European Funding

Partnership

Additionality

Administration

Appendix A ---~

Appendix B

Appendix C

Evaluation

The Crowley Report

Cost Diferentials

Appendix C

Market Access

Jennings Report

Follow-up Actions

Quarter

Third Quarter 1993

Fourth Quarter 1993

First Quarter 1994

Second Quarter 1994

Third Quarter 1994

Economic Modelling

Appendix D

Administration

Evaluation Unit)

Evaluation

Tsipouri Report

Deloitte and Touche

__ __ fppend1x D

External Evaluation

Evaluation Approach

---~pp_end~D__________________

technology

PAT Purpose

AMT Ireland

Bioresearch Ireland

Materials Ireland

Optronics Ireland

_____A~ppendix___

Software

Other PA Ts

Other Programmes

other areas

Technology A ridm

Other Programmes

Scope ofthe Measure

___Append_u_D__

Tsipouri found that

SERTEC

Ocher Evaluations

Appendix E

Visitor Centres

Appendix E

smoothly

pound3

Financial Control

Payment Delays

______A~P~p_endO -_______

Post Payment Review

Evaluation

through

pound8

Appendix_pound

Appendix E

Measure 8 Marketing

Sailing 2000 8000 9000

Cruising 16000 32000 19000

Angling 52000 110000 81000

Golf 14000 60000 38000

Equestrian 12000 28000 18000

pound12

------------------

pound14

Appendix F

Administration

Appendix F

The study found

Measure 2 - Mentor

--------Appendix F

Scope of the Meamre

Appendix F

Scope of the Meamre

Measure 5 - Equity

Appendix G

Table G1

1988 255 37 218 149 583 1989 26S 43 221 152 576 1990 323 56 268 158 490 1991 363 53 310 157 431 1992 400 59 341 174 436 1993 453 74 379 194 429

Cost Recovery

Appendix G___

Export Performance

User Perceptions

_ppendzx G

Scope of the Meamre

Appendix H

Programme Review

Financial Outturn

Appendix II

Economic Impact

Appendix H__

Water S14pply

Table of Contents

Glossary

Summary of Findings

Transport

Tourism

Marketing

Pre-1989 Projects

Appendices

22 December 1995

Table of Contents

Chapter 1

Chapter 2

Chapter 3

Chapter 4

Chapter 5

Chapter 6

Chapter 7

Chapter 8

Transport 9

Tourism 29

Marketing 49

Appendices

European Funding

Glossary

--- -- ------

Summary of Findings

Background

CSF 1989-1993

Economic Impact

Specific Measures

Transport

Summary ofFindings

Tourism

Marketing

Pre-1989 Measures

Category Total

poundm

ERDF funding

poundm

Other EU funding

poundm

Perifra I and II

performance

Impact of the CSF

middot------------------------------ shy

General Findings

Chapter 2 Transport

Background

Objectives

Expenditure

Sector

State Airports

Regional Airports

Commercial Seaports

Local Seaports

Rail Freight

Mainline Rail

Forecast

poundm

Outturn

poundm

652 ---------------middot--

Total 90576 86090

to 1994 and 1995

Programme Output

Tran~port__ ___ _

Category

- Bridge Works

Target

50 - 55 kms

75 - 80 kms

About 200 bridges

75 kms

95 kms

161 bridges

65 kms 810 kms

79 bridges

60 kms 565 kms

58 bridges

State Airports

expected in 1993

Regional Airports

Sligo Airport 040

Total 2085

1989 413000

1990 483900

1991 371000 1992 272700 1993 235700

Commercial Seaports

Local Ports

Rail Freight

Mainline Rail

External Evaluation

Programme Impact

Transport

Transport Impacts

Economic Impact

Background

Expenditure

Measure poundm

components

Achievement

Expenditure poundm

Source Forfas

Deloztte and Touche

Other Measures

Chapter 4 Tourism

Background

Expenditure

Total 3309 1372 462 1475

Measures

Measure poundm

6 Caravan parks

8 Marketing 24

Total 1285

Measure poundm

5 Conferences 241

Total 2018

this report

Targets

Tourist 810000 147 100

Business 438000 53 13

Overall 2345000 90 42

To1msm 1989-1993

Overseas Visitors

Tourism

4000 --middotmiddot

~ ~- 2000shyBs

rn gt 0

~ Iz I

-middot--shy

rmiddot

J 11 shy

i-shyIshyL

middot

1901 1902 1983 1904 1905 1906 1987 1908 1909 1990 1991 1992 1993 1994

1988 1993

Attributability

Tourism

Other Findings

Background

Expenditure

2 Mentor 052 064

Total 2720 2250

Measure

Advisory Support

5 Equity

6 AnalysesStudies

Forecast poundm

Total 12488

Actual poundm

growth potential

initiatives

Achievement

53 and 54

Table 53

1989 1990 1991 1992 1993 Total

Gross job losses 5744 7425 6711 6499 5560 31939

Net jobs created 2366 (622) (933) (1330) 455 (64)

1989 1990 1991 1992 1993 Total

Gross job losses 5673 3179 5682 6712 5858 27 104

Net jobs created (292) 3528 (40) (452) (1099) 1645

Evaluation Process

Evaluation Outcome

External Evaluation

Deloiue and To11che

Sectoral Impact

-------------- -middot

Chapter 6 Marketing

Background

Activities

Expenditure

Total 1291 1138

Export Achievement

Markeung

1988 27b

1989 30

1990 32

1991 34

1992 37

1993 middot40

1994 46

b Revised outturn

External Evaluation

Ma_rketmg

Other Issues

Cost Recovery

Marketing

Background

Expenditure

T2ble 71

Total 22184 22188

Programme Control

---middot ---------------------- shy

Project Selection

Programme Content

stages

Programme Outtum

Table 72

Indicator

Number of intakes

Targets

400000

115000

Table 73

Indicator

Number of intakes

Projected outturn

166458

Indicator Targets

secondary 30

tertiary 3 36

secondary 19

tertiary 7 28

bull the volume of

Project Review

Tendering

Physical Conditions

Final Accounts

Background

poundm poundm

Water Services

Pre-1989 lrojects

services proiects

approved

Finance

Current Position

Pre-1989 Pro1ects

Appendices

Appendix A

European Funding

Partnership

Additionality

Administration

Appendix A ---~

Appendix B

Appendix C

Evaluation

The Crowley Report

Cost Diferentials

Appendix C

Market Access

Jennings Report

Follow-up Actions

Quarter

Third Quarter 1993

Fourth Quarter 1993

First Quarter 1994

Second Quarter 1994

Third Quarter 1994

Economic Modelling

Appendix D

Administration

Evaluation Unit)

Evaluation

Tsipouri Report

Deloitte and Touche

__ __ fppend1x D

External Evaluation

Evaluation Approach

---~pp_end~D__________________

technology

PAT Purpose

AMT Ireland

Bioresearch Ireland

Materials Ireland

Optronics Ireland

_____A~ppendix___

Software

Other PA Ts

Other Programmes

other areas

Technology A ridm

Other Programmes

Scope ofthe Measure

___Append_u_D__

Tsipouri found that

SERTEC

Ocher Evaluations

Appendix E

Visitor Centres

Appendix E

smoothly

pound3

Financial Control

Payment Delays

______A~P~p_endO -_______

Post Payment Review

Evaluation

through

pound8

Appendix_pound

Appendix E

Measure 8 Marketing

Sailing 2000 8000 9000

Cruising 16000 32000 19000

Angling 52000 110000 81000

Golf 14000 60000 38000

Equestrian 12000 28000 18000

pound12

------------------

pound14

Appendix F

Administration

Appendix F

The study found

Measure 2 - Mentor

--------Appendix F

Scope of the Meamre

Appendix F

Scope of the Meamre

Measure 5 - Equity

Appendix G

Table G1

1988 255 37 218 149 583 1989 26S 43 221 152 576 1990 323 56 268 158 490 1991 363 53 310 157 431 1992 400 59 341 174 436 1993 453 74 379 194 429

Cost Recovery

Appendix G___

Export Performance

User Perceptions

_ppendzx G

Scope of the Meamre

Appendix H

Programme Review

Financial Outturn

Appendix II

Economic Impact

Appendix H__

Water S14pply

Table of Contents

Glossary

Summary of Findings

Transport

Tourism

Marketing

Pre-1989 Projects

Appendices

Table of Contents

Chapter 1

Chapter 2

Chapter 3

Chapter 4

Chapter 5

Chapter 6

Chapter 7

Chapter 8

Transport 9

Tourism 29

Marketing 49

Appendices

European Funding

Glossary

--- -- ------

Summary of Findings

Background

CSF 1989-1993

Economic Impact

Specific Measures

Transport

Summary ofFindings

Tourism

Marketing

Pre-1989 Measures

Category Total

poundm

ERDF funding

poundm

Other EU funding

poundm

Perifra I and II

performance

Impact of the CSF

middot------------------------------ shy

General Findings

Chapter 2 Transport

Background

Objectives

Expenditure

Sector

State Airports

Regional Airports

Commercial Seaports

Local Seaports

Rail Freight

Mainline Rail

Forecast

poundm

Outturn

poundm

652 ---------------middot--

Total 90576 86090

to 1994 and 1995

Programme Output

Tran~port__ ___ _

Category

- Bridge Works

Target

50 - 55 kms

75 - 80 kms

About 200 bridges

75 kms

95 kms

161 bridges

65 kms 810 kms

79 bridges

60 kms 565 kms

58 bridges

State Airports

expected in 1993

Regional Airports

Sligo Airport 040

Total 2085

1989 413000

1990 483900

1991 371000 1992 272700 1993 235700

Commercial Seaports

Local Ports

Rail Freight

Mainline Rail

External Evaluation

Programme Impact

Transport

Transport Impacts

Economic Impact

Background

Expenditure

Measure poundm

components

Achievement

Expenditure poundm

Source Forfas

Deloztte and Touche

Other Measures

Chapter 4 Tourism

Background

Expenditure

Total 3309 1372 462 1475

Measures

Measure poundm

6 Caravan parks

8 Marketing 24

Total 1285

Measure poundm

5 Conferences 241

Total 2018

this report

Targets

Tourist 810000 147 100

Business 438000 53 13

Overall 2345000 90 42

To1msm 1989-1993

Overseas Visitors

Tourism

4000 --middotmiddot

~ ~- 2000shyBs

rn gt 0

~ Iz I

-middot--shy

rmiddot

J 11 shy

i-shyIshyL

middot

1901 1902 1983 1904 1905 1906 1987 1908 1909 1990 1991 1992 1993 1994

1988 1993

Attributability

Tourism

Other Findings

Background

Expenditure

2 Mentor 052 064

Total 2720 2250

Measure

Advisory Support

5 Equity

6 AnalysesStudies

Forecast poundm

Total 12488

Actual poundm

growth potential

initiatives

Achievement

53 and 54

Table 53

1989 1990 1991 1992 1993 Total

Gross job losses 5744 7425 6711 6499 5560 31939

Net jobs created 2366 (622) (933) (1330) 455 (64)

1989 1990 1991 1992 1993 Total

Gross job losses 5673 3179 5682 6712 5858 27 104

Net jobs created (292) 3528 (40) (452) (1099) 1645

Evaluation Process

Evaluation Outcome

External Evaluation

Deloiue and To11che

Sectoral Impact

-------------- -middot

Chapter 6 Marketing

Background

Activities

Expenditure

Total 1291 1138

Export Achievement

Markeung

1988 27b

1989 30

1990 32

1991 34

1992 37

1993 middot40

1994 46

b Revised outturn

External Evaluation

Ma_rketmg

Other Issues

Cost Recovery

Marketing

Background

Expenditure

T2ble 71

Total 22184 22188

Programme Control

---middot ---------------------- shy

Project Selection

Programme Content

stages

Programme Outtum

Table 72

Indicator

Number of intakes

Targets

400000

115000

Table 73

Indicator

Number of intakes

Projected outturn

166458

Indicator Targets

secondary 30

tertiary 3 36

secondary 19

tertiary 7 28

bull the volume of

Project Review

Tendering

Physical Conditions

Final Accounts

Background

poundm poundm

Water Services

Pre-1989 lrojects

services proiects

approved

Finance

Current Position

Pre-1989 Pro1ects

Appendices

Appendix A

European Funding

Partnership

Additionality

Administration

Appendix A ---~

Appendix B

Appendix C

Evaluation

The Crowley Report

Cost Diferentials

Appendix C

Market Access

Jennings Report

Follow-up Actions

Quarter

Third Quarter 1993

Fourth Quarter 1993

First Quarter 1994

Second Quarter 1994

Third Quarter 1994

Economic Modelling

Appendix D

Administration

Evaluation Unit)

Evaluation

Tsipouri Report

Deloitte and Touche

__ __ fppend1x D

External Evaluation

Evaluation Approach

---~pp_end~D__________________

technology

PAT Purpose

AMT Ireland

Bioresearch Ireland

Materials Ireland

Optronics Ireland

_____A~ppendix___

Software

Other PA Ts

Other Programmes

other areas

Technology A ridm

Other Programmes

Scope ofthe Measure

___Append_u_D__

Tsipouri found that

SERTEC

Ocher Evaluations

Appendix E

Visitor Centres

Appendix E

smoothly

pound3

Financial Control

Payment Delays

______A~P~p_endO -_______

Post Payment Review

Evaluation

through

pound8

Appendix_pound

Appendix E

Measure 8 Marketing

Sailing 2000 8000 9000

Cruising 16000 32000 19000

Angling 52000 110000 81000

Golf 14000 60000 38000

Equestrian 12000 28000 18000

pound12

------------------

pound14

Appendix F

Administration

Appendix F

The study found

Measure 2 - Mentor

--------Appendix F

Scope of the Meamre

Appendix F

Scope of the Meamre

Measure 5 - Equity

Appendix G

Table G1

1988 255 37 218 149 583 1989 26S 43 221 152 576 1990 323 56 268 158 490 1991 363 53 310 157 431 1992 400 59 341 174 436 1993 453 74 379 194 429

Cost Recovery

Appendix G___

Export Performance

User Perceptions

_ppendzx G

Scope of the Meamre

Appendix H

Programme Review

Financial Outturn

Appendix II

Economic Impact

Appendix H__

Water S14pply

Table of Contents

Glossary

Summary of Findings

Transport

Tourism

Marketing

Pre-1989 Projects

Appendices

Glossary

--- -- ------

Summary of Findings

Background

CSF 1989-1993

Economic Impact

Specific Measures

Transport

Summary ofFindings

Tourism

Marketing

Pre-1989 Measures

Category Total

poundm

ERDF funding

poundm

Other EU funding

poundm

Perifra I and II

performance

Impact of the CSF

middot------------------------------ shy

General Findings

Chapter 2 Transport

Background

Objectives

Expenditure

Sector

State Airports

Regional Airports

Commercial Seaports

Local Seaports

Rail Freight

Mainline Rail

Forecast

poundm

Outturn

poundm

652 ---------------middot--

Total 90576 86090

to 1994 and 1995

Programme Output

Tran~port__ ___ _

Category

- Bridge Works

Target

50 - 55 kms

75 - 80 kms

About 200 bridges

75 kms

95 kms

161 bridges

65 kms 810 kms

79 bridges

60 kms 565 kms

58 bridges

State Airports

expected in 1993

Regional Airports

Sligo Airport 040

Total 2085

1989 413000

1990 483900

1991 371000 1992 272700 1993 235700

Commercial Seaports

Local Ports

Rail Freight

Mainline Rail

External Evaluation

Programme Impact

Transport

Transport Impacts

Economic Impact

Background

Expenditure

Measure poundm

components

Achievement

Expenditure poundm

Source Forfas

Deloztte and Touche

Other Measures

Chapter 4 Tourism

Background

Expenditure

Total 3309 1372 462 1475

Measures

Measure poundm

6 Caravan parks

8 Marketing 24

Total 1285

Measure poundm

5 Conferences 241

Total 2018

this report

Targets

Tourist 810000 147 100

Business 438000 53 13

Overall 2345000 90 42

To1msm 1989-1993

Overseas Visitors

Tourism

4000 --middotmiddot

~ ~- 2000shyBs

rn gt 0

~ Iz I

-middot--shy

rmiddot

J 11 shy

i-shyIshyL

middot

1901 1902 1983 1904 1905 1906 1987 1908 1909 1990 1991 1992 1993 1994

1988 1993

Attributability

Tourism

Other Findings

Background

Expenditure

2 Mentor 052 064

Total 2720 2250

Measure

Advisory Support

5 Equity

6 AnalysesStudies

Forecast poundm

Total 12488

Actual poundm

growth potential

initiatives

Achievement

53 and 54

Table 53

1989 1990 1991 1992 1993 Total

Gross job losses 5744 7425 6711 6499 5560 31939

Net jobs created 2366 (622) (933) (1330) 455 (64)

1989 1990 1991 1992 1993 Total

Gross job losses 5673 3179 5682 6712 5858 27 104

Net jobs created (292) 3528 (40) (452) (1099) 1645

Evaluation Process

Evaluation Outcome

External Evaluation

Deloiue and To11che

Sectoral Impact

-------------- -middot

Chapter 6 Marketing

Background

Activities

Expenditure

Total 1291 1138

Export Achievement

Markeung

1988 27b

1989 30

1990 32

1991 34

1992 37

1993 middot40

1994 46

b Revised outturn

External Evaluation

Ma_rketmg

Other Issues

Cost Recovery

Marketing

Background

Expenditure

T2ble 71

Total 22184 22188

Programme Control

---middot ---------------------- shy

Project Selection

Programme Content

stages

Programme Outtum

Table 72

Indicator

Number of intakes

Targets

400000

115000

Table 73

Indicator

Number of intakes

Projected outturn

166458

Indicator Targets

secondary 30

tertiary 3 36

secondary 19

tertiary 7 28

bull the volume of

Project Review

Tendering

Physical Conditions

Final Accounts

Background

poundm poundm

Water Services

Pre-1989 lrojects

services proiects

approved

Finance

Current Position

Pre-1989 Pro1ects

Appendices

Appendix A

European Funding

Partnership

Additionality

Administration

Appendix A ---~

Appendix B

Appendix C

Evaluation

The Crowley Report

Cost Diferentials

Appendix C

Market Access

Jennings Report

Follow-up Actions

Quarter

Third Quarter 1993

Fourth Quarter 1993

First Quarter 1994

Second Quarter 1994

Third Quarter 1994

Economic Modelling

Appendix D

Administration

Evaluation Unit)

Evaluation

Tsipouri Report

Deloitte and Touche

__ __ fppend1x D

External Evaluation

Evaluation Approach

---~pp_end~D__________________

technology

PAT Purpose

AMT Ireland

Bioresearch Ireland

Materials Ireland

Optronics Ireland

_____A~ppendix___

Software

Other PA Ts

Other Programmes

other areas

Technology A ridm

Other Programmes

Scope ofthe Measure

___Append_u_D__

Tsipouri found that

SERTEC

Ocher Evaluations

Appendix E

Visitor Centres

Appendix E

smoothly

pound3

Financial Control

Payment Delays

______A~P~p_endO -_______

Post Payment Review

Evaluation

through

pound8

Appendix_pound

Appendix E

Measure 8 Marketing

Sailing 2000 8000 9000

Cruising 16000 32000 19000

Angling 52000 110000 81000

Golf 14000 60000 38000

Equestrian 12000 28000 18000

pound12

------------------

pound14

Appendix F

Administration

Appendix F

The study found

Measure 2 - Mentor

--------Appendix F

Scope of the Meamre

Appendix F

Scope of the Meamre

Measure 5 - Equity

Appendix G

Table G1

1988 255 37 218 149 583 1989 26S 43 221 152 576 1990 323 56 268 158 490 1991 363 53 310 157 431 1992 400 59 341 174 436 1993 453 74 379 194 429

Cost Recovery

Appendix G___

Export Performance

User Perceptions

_ppendzx G

Scope of the Meamre

Appendix H

Programme Review

Financial Outturn

Appendix II

Economic Impact

Appendix H__

Water S14pply

Table of Contents

Glossary

Summary of Findings

Transport

Tourism

Marketing

Pre-1989 Projects

Appendices

--- -- ------

Summary of Findings

Background

CSF 1989-1993

Economic Impact

Specific Measures

Transport

Summary ofFindings

Tourism

Marketing

Pre-1989 Measures

Category Total

poundm

ERDF funding

poundm

Other EU funding

poundm

Perifra I and II

performance

Impact of the CSF

middot------------------------------ shy

General Findings

Chapter 2 Transport

Background

Objectives

Expenditure

Sector

State Airports

Regional Airports

Commercial Seaports

Local Seaports

Rail Freight

Mainline Rail

Forecast

poundm

Outturn

poundm

652 ---------------middot--

Total 90576 86090

to 1994 and 1995

Programme Output

Tran~port__ ___ _

Category

- Bridge Works

Target

50 - 55 kms

75 - 80 kms

About 200 bridges

75 kms

95 kms

161 bridges

65 kms 810 kms

79 bridges

60 kms 565 kms

58 bridges

State Airports

expected in 1993

Regional Airports

Sligo Airport 040

Total 2085

1989 413000

1990 483900

1991 371000 1992 272700 1993 235700

Commercial Seaports

Local Ports

Rail Freight

Mainline Rail

External Evaluation

Programme Impact

Transport

Transport Impacts

Economic Impact

Background

Expenditure

Measure poundm

components

Achievement

Expenditure poundm

Source Forfas

Deloztte and Touche

Other Measures

Chapter 4 Tourism

Background

Expenditure

Total 3309 1372 462 1475

Measures

Measure poundm

6 Caravan parks

8 Marketing 24

Total 1285

Measure poundm

5 Conferences 241

Total 2018

this report

Targets

Tourist 810000 147 100

Business 438000 53 13

Overall 2345000 90 42

To1msm 1989-1993

Overseas Visitors

Tourism

4000 --middotmiddot

~ ~- 2000shyBs

rn gt 0

~ Iz I

-middot--shy

rmiddot

J 11 shy

i-shyIshyL

middot

1901 1902 1983 1904 1905 1906 1987 1908 1909 1990 1991 1992 1993 1994

1988 1993

Attributability

Tourism

Other Findings

Background

Expenditure

2 Mentor 052 064

Total 2720 2250

Measure

Advisory Support

5 Equity

6 AnalysesStudies

Forecast poundm

Total 12488

Actual poundm

growth potential

initiatives

Achievement

53 and 54

Table 53

1989 1990 1991 1992 1993 Total

Gross job losses 5744 7425 6711 6499 5560 31939

Net jobs created 2366 (622) (933) (1330) 455 (64)

1989 1990 1991 1992 1993 Total

Gross job losses 5673 3179 5682 6712 5858 27 104

Net jobs created (292) 3528 (40) (452) (1099) 1645

Evaluation Process

Evaluation Outcome

External Evaluation

Deloiue and To11che

Sectoral Impact

-------------- -middot

Chapter 6 Marketing

Background

Activities

Expenditure

Total 1291 1138

Export Achievement

Markeung

1988 27b

1989 30

1990 32

1991 34

1992 37

1993 middot40

1994 46

b Revised outturn

External Evaluation

Ma_rketmg

Other Issues

Cost Recovery

Marketing

Background

Expenditure

T2ble 71

Total 22184 22188

Programme Control

---middot ---------------------- shy

Project Selection

Programme Content

stages

Programme Outtum

Table 72

Indicator

Number of intakes

Targets

400000

115000

Table 73

Indicator

Number of intakes

Projected outturn

166458

Indicator Targets

secondary 30

tertiary 3 36

secondary 19

tertiary 7 28

bull the volume of

Project Review

Tendering

Physical Conditions

Final Accounts

Background

poundm poundm

Water Services

Pre-1989 lrojects

services proiects

approved

Finance

Current Position

Pre-1989 Pro1ects

Appendices

Appendix A

European Funding

Partnership

Additionality

Administration

Appendix A ---~

Appendix B

Appendix C

Evaluation

The Crowley Report

Cost Diferentials

Appendix C

Market Access

Jennings Report

Follow-up Actions

Quarter

Third Quarter 1993

Fourth Quarter 1993

First Quarter 1994

Second Quarter 1994

Third Quarter 1994

Economic Modelling

Appendix D

Administration

Evaluation Unit)

Evaluation

Tsipouri Report

Deloitte and Touche

__ __ fppend1x D

External Evaluation

Evaluation Approach

---~pp_end~D__________________

technology

PAT Purpose

AMT Ireland

Bioresearch Ireland

Materials Ireland

Optronics Ireland

_____A~ppendix___

Software

Other PA Ts

Other Programmes

other areas

Technology A ridm

Other Programmes

Scope ofthe Measure

___Append_u_D__

Tsipouri found that

SERTEC

Ocher Evaluations

Appendix E

Visitor Centres

Appendix E

smoothly

pound3

Financial Control

Payment Delays

______A~P~p_endO -_______

Post Payment Review

Evaluation

through

pound8

Appendix_pound

Appendix E

Measure 8 Marketing

Sailing 2000 8000 9000

Cruising 16000 32000 19000

Angling 52000 110000 81000

Golf 14000 60000 38000

Equestrian 12000 28000 18000

pound12

------------------

pound14

Appendix F

Administration

Appendix F

The study found

Measure 2 - Mentor

--------Appendix F

Scope of the Meamre

Appendix F

Scope of the Meamre

Measure 5 - Equity

Appendix G

Table G1

1988 255 37 218 149 583 1989 26S 43 221 152 576 1990 323 56 268 158 490 1991 363 53 310 157 431 1992 400 59 341 174 436 1993 453 74 379 194 429

Cost Recovery

Appendix G___

Export Performance

User Perceptions

_ppendzx G

Scope of the Meamre

Appendix H

Programme Review

Financial Outturn

Appendix II

Economic Impact

Appendix H__

Water S14pply

Table of Contents

Glossary

Summary of Findings

Transport

Tourism

Marketing

Pre-1989 Projects

Appendices

Economic Impact

Specific Measures

Transport

Summary ofFindings

Tourism

Marketing

Pre-1989 Measures

Category Total

poundm

ERDF funding

poundm

Other EU funding

poundm

Perifra I and II

performance

Impact of the CSF

middot------------------------------ shy

General Findings

Chapter 2 Transport

Background

Objectives

Expenditure

Sector

State Airports

Regional Airports

Commercial Seaports

Local Seaports

Rail Freight

Mainline Rail

Forecast

poundm

Outturn

poundm

652 ---------------middot--

Total 90576 86090

to 1994 and 1995

Programme Output

Tran~port__ ___ _

Category

- Bridge Works

Target

50 - 55 kms

75 - 80 kms

About 200 bridges

75 kms

95 kms

161 bridges

65 kms 810 kms

79 bridges

60 kms 565 kms

58 bridges

State Airports

expected in 1993

Regional Airports

Sligo Airport 040

Total 2085

1989 413000

1990 483900

1991 371000 1992 272700 1993 235700

Commercial Seaports

Local Ports

Rail Freight

Mainline Rail

External Evaluation

Programme Impact

Transport

Transport Impacts

Economic Impact

Background

Expenditure

Measure poundm

components

Achievement

Expenditure poundm

Source Forfas

Deloztte and Touche

Other Measures

Chapter 4 Tourism

Background

Expenditure

Total 3309 1372 462 1475

Measures

Measure poundm

6 Caravan parks

8 Marketing 24

Total 1285

Measure poundm

5 Conferences 241

Total 2018

this report

Targets

Tourist 810000 147 100

Business 438000 53 13

Overall 2345000 90 42

To1msm 1989-1993

Overseas Visitors

Tourism

4000 --middotmiddot

~ ~- 2000shyBs

rn gt 0

~ Iz I

-middot--shy

rmiddot

J 11 shy

i-shyIshyL

middot

1901 1902 1983 1904 1905 1906 1987 1908 1909 1990 1991 1992 1993 1994

1988 1993

Attributability

Tourism

Other Findings

Background

Expenditure

2 Mentor 052 064

Total 2720 2250

Measure

Advisory Support

5 Equity

6 AnalysesStudies

Forecast poundm

Total 12488

Actual poundm

growth potential

initiatives

Achievement

53 and 54

Table 53

1989 1990 1991 1992 1993 Total

Gross job losses 5744 7425 6711 6499 5560 31939

Net jobs created 2366 (622) (933) (1330) 455 (64)

1989 1990 1991 1992 1993 Total

Gross job losses 5673 3179 5682 6712 5858 27 104

Net jobs created (292) 3528 (40) (452) (1099) 1645

Evaluation Process

Evaluation Outcome

External Evaluation

Deloiue and To11che

Sectoral Impact

-------------- -middot

Chapter 6 Marketing

Background

Activities

Expenditure

Total 1291 1138

Export Achievement

Markeung

1988 27b

1989 30

1990 32

1991 34

1992 37

1993 middot40

1994 46

b Revised outturn

External Evaluation

Ma_rketmg

Other Issues

Cost Recovery

Marketing

Background

Expenditure

T2ble 71

Total 22184 22188

Programme Control

---middot ---------------------- shy

Project Selection

Programme Content

stages

Programme Outtum

Table 72

Indicator

Number of intakes

Targets

400000

115000

Table 73

Indicator

Number of intakes

Projected outturn

166458

Indicator Targets

secondary 30

tertiary 3 36

secondary 19

tertiary 7 28

bull the volume of

Project Review

Tendering

Physical Conditions

Final Accounts

Background

poundm poundm

Water Services

Pre-1989 lrojects

services proiects

approved

Finance

Current Position

Pre-1989 Pro1ects

Appendices

Appendix A

European Funding

Partnership

Additionality

Administration

Appendix A ---~

Appendix B

Appendix C

Evaluation

The Crowley Report

Cost Diferentials

Appendix C

Market Access

Jennings Report

Follow-up Actions

Quarter

Third Quarter 1993

Fourth Quarter 1993

First Quarter 1994

Second Quarter 1994

Third Quarter 1994

Economic Modelling

Appendix D

Administration

Evaluation Unit)

Evaluation

Tsipouri Report

Deloitte and Touche

__ __ fppend1x D

External Evaluation

Evaluation Approach

---~pp_end~D__________________

technology

PAT Purpose

AMT Ireland

Bioresearch Ireland

Materials Ireland

Optronics Ireland

_____A~ppendix___

Software

Other PA Ts

Other Programmes

other areas

Technology A ridm

Other Programmes

Scope ofthe Measure

___Append_u_D__

Tsipouri found that

SERTEC

Ocher Evaluations

Appendix E

Visitor Centres

Appendix E

smoothly

pound3

Financial Control

Payment Delays

______A~P~p_endO -_______

Post Payment Review

Evaluation

through

pound8

Appendix_pound

Appendix E

Measure 8 Marketing

Sailing 2000 8000 9000

Cruising 16000 32000 19000

Angling 52000 110000 81000

Golf 14000 60000 38000

Equestrian 12000 28000 18000

pound12

------------------

pound14

Appendix F

Administration

Appendix F

The study found

Measure 2 - Mentor

--------Appendix F

Scope of the Meamre

Appendix F

Scope of the Meamre

Measure 5 - Equity

Appendix G

Table G1

1988 255 37 218 149 583 1989 26S 43 221 152 576 1990 323 56 268 158 490 1991 363 53 310 157 431 1992 400 59 341 174 436 1993 453 74 379 194 429

Cost Recovery

Appendix G___

Export Performance

User Perceptions

_ppendzx G

Scope of the Meamre

Appendix H

Programme Review

Financial Outturn

Appendix II

Economic Impact

Appendix H__

Water S14pply

Table of Contents

Glossary

Summary of Findings

Transport

Tourism

Marketing

Pre-1989 Projects

Appendices

Summary ofFindings

Tourism

Marketing

Pre-1989 Measures

Category Total

poundm

ERDF funding

poundm

Other EU funding

poundm

Perifra I and II

performance

Impact of the CSF

middot------------------------------ shy

General Findings

Chapter 2 Transport

Background

Objectives

Expenditure

Sector

State Airports

Regional Airports

Commercial Seaports

Local Seaports

Rail Freight

Mainline Rail

Forecast

poundm

Outturn

poundm

652 ---------------middot--

Total 90576 86090

to 1994 and 1995

Programme Output

Tran~port__ ___ _

Category

- Bridge Works

Target

50 - 55 kms

75 - 80 kms

About 200 bridges

75 kms

95 kms

161 bridges

65 kms 810 kms

79 bridges

60 kms 565 kms

58 bridges

State Airports

expected in 1993

Regional Airports

Sligo Airport 040

Total 2085

1989 413000

1990 483900

1991 371000 1992 272700 1993 235700

Commercial Seaports

Local Ports

Rail Freight

Mainline Rail

External Evaluation

Programme Impact

Transport

Transport Impacts

Economic Impact

Background

Expenditure

Measure poundm

components

Achievement

Expenditure poundm

Source Forfas

Deloztte and Touche

Other Measures

Chapter 4 Tourism

Background

Expenditure

Total 3309 1372 462 1475

Measures

Measure poundm

6 Caravan parks

8 Marketing 24

Total 1285

Measure poundm

5 Conferences 241

Total 2018

this report

Targets

Tourist 810000 147 100

Business 438000 53 13

Overall 2345000 90 42

To1msm 1989-1993

Overseas Visitors

Tourism

4000 --middotmiddot

~ ~- 2000shyBs

rn gt 0

~ Iz I

-middot--shy

rmiddot

J 11 shy

i-shyIshyL

middot

1901 1902 1983 1904 1905 1906 1987 1908 1909 1990 1991 1992 1993 1994

1988 1993

Attributability

Tourism

Other Findings

Background

Expenditure

2 Mentor 052 064

Total 2720 2250

Measure

Advisory Support

5 Equity

6 AnalysesStudies

Forecast poundm

Total 12488

Actual poundm

growth potential

initiatives

Achievement

53 and 54

Table 53

1989 1990 1991 1992 1993 Total

Gross job losses 5744 7425 6711 6499 5560 31939

Net jobs created 2366 (622) (933) (1330) 455 (64)

1989 1990 1991 1992 1993 Total

Gross job losses 5673 3179 5682 6712 5858 27 104

Net jobs created (292) 3528 (40) (452) (1099) 1645

Evaluation Process

Evaluation Outcome

External Evaluation

Deloiue and To11che

Sectoral Impact

-------------- -middot

Chapter 6 Marketing

Background

Activities

Expenditure

Total 1291 1138

Export Achievement

Markeung

1988 27b

1989 30

1990 32

1991 34

1992 37

1993 middot40

1994 46

b Revised outturn

External Evaluation

Ma_rketmg

Other Issues

Cost Recovery

Marketing

Background

Expenditure

T2ble 71

Total 22184 22188

Programme Control

---middot ---------------------- shy

Project Selection

Programme Content

stages

Programme Outtum

Table 72

Indicator

Number of intakes

Targets

400000

115000

Table 73

Indicator

Number of intakes

Projected outturn

166458

Indicator Targets

secondary 30

tertiary 3 36

secondary 19

tertiary 7 28

bull the volume of

Project Review

Tendering

Physical Conditions

Final Accounts

Background

poundm poundm

Water Services

Pre-1989 lrojects

services proiects

approved

Finance

Current Position

Pre-1989 Pro1ects

Appendices

Appendix A

European Funding

Partnership

Additionality

Administration

Appendix A ---~

Appendix B

Appendix C

Evaluation

The Crowley Report

Cost Diferentials

Appendix C

Market Access

Jennings Report

Follow-up Actions

Quarter

Third Quarter 1993

Fourth Quarter 1993

First Quarter 1994

Second Quarter 1994

Third Quarter 1994

Economic Modelling

Appendix D

Administration

Evaluation Unit)

Evaluation

Tsipouri Report

Deloitte and Touche

__ __ fppend1x D

External Evaluation

Evaluation Approach

---~pp_end~D__________________

technology

PAT Purpose

AMT Ireland

Bioresearch Ireland

Materials Ireland

Optronics Ireland

_____A~ppendix___

Software

Other PA Ts

Other Programmes

other areas

Technology A ridm

Other Programmes

Scope ofthe Measure

___Append_u_D__

Tsipouri found that

SERTEC

Ocher Evaluations

Appendix E

Visitor Centres

Appendix E

smoothly

pound3

Financial Control

Payment Delays

______A~P~p_endO -_______

Post Payment Review

Evaluation

through

pound8

Appendix_pound

Appendix E

Measure 8 Marketing

Sailing 2000 8000 9000

Cruising 16000 32000 19000

Angling 52000 110000 81000

Golf 14000 60000 38000

Equestrian 12000 28000 18000

pound12

------------------

pound14

Appendix F

Administration

Appendix F

The study found

Measure 2 - Mentor

--------Appendix F

Scope of the Meamre

Appendix F

Scope of the Meamre

Measure 5 - Equity

Appendix G

Table G1

1988 255 37 218 149 583 1989 26S 43 221 152 576 1990 323 56 268 158 490 1991 363 53 310 157 431 1992 400 59 341 174 436 1993 453 74 379 194 429

Cost Recovery

Appendix G___

Export Performance

User Perceptions

_ppendzx G

Scope of the Meamre

Appendix H

Programme Review

Financial Outturn

Appendix II

Economic Impact

Appendix H__

Water S14pply

Table of Contents

Glossary

Summary of Findings

Transport

Tourism

Marketing

Pre-1989 Projects

Appendices

Documents

Regional Development Measures - Comptroller and Auditor